Income Protection is an insurance policy designed to provide financial support if you cannot work because you are ill or injured over a long-term period of time. It offers a regular income until you are able to return to work or even retire.
Income Protection is different from critical illness insurance which pays out a one-off, lump sum if you have a particularly serious illness. It is also different to short-term income protection which, whilst it does pay out a monthly sum related to your income, it only pays out for a limited period of time (most policies cover two to five years) and often covers fewer illnesses or situations.
Some Benefits Of Income Protection:
Income Protection replaces some of your income if you can’t work due to illness, injury or if you become disabled
Income Protection pays out until you are able to start work again, until you retire, die or the end of the policy, whichever is sooner.
You can wait before the payments start until your sick pay from work ends or any other insurance stops. The longer you can wait, the lower the monthly premiums will be.
Income Protection covers most illnesses that stop you from being able to work, though this can depend on the type of policy and its definition of illness.
You can claim as many times as you need to on your Income Protection policy, whilst the policy lasts.