Income protection insurance is a type of policy designed to provide you with a regular income if you're unable to work due to illness or an accident. Here are some key points about it:
- Purpose: It replaces a portion of your income, typically between 50% and 65%, if you can't work due to health issues
- Duration: The payments continue until you can return to work, retire, or reach the end of the policy term
- Coverage: It covers most illnesses and injuries that prevent you from working, either short-term or long-term
- Waiting Period: There's usually a waiting period before payments start, which can range from a few weeks to a year
This type of insurance can be particularly useful if you don't have sufficient savings or if your employer's sick pay is limited. Does this help clarify things for you?
