A Guide to income protection
April 5, 2024
What is income protection?
Income protection insurance swoops in with a replacement income if you’re knocked out of work by illness or injury. With options for short-term or long-term cover, there's a plan for every scenario.
How does income protection work?
Typically, you can snag a policy that covers 50-65% of your pre-tax monthly income for a set period. It kicks in after a specified 'deferred' period, which you choose when taking out the policy. This can start from day one of illness, but not before your employer's sick pay runs out. It pays if you’re ill or injured and can’t work for a long stretch of time. You can claim on your income protection as many times as needed while the policy is active. There are plenty of cover options to fit your budget, but make sure you know exactly what you're signing up for. Chat with one of our expert Advisers for the lowdown.
Do I need income protection?
Ask yourself this… ‘If I was unable to work because I was Ill and my income had stopped, could I pay my bills?’. If your answer is a 'no,' then guess what? You probably need it.