Income protection gives you assurance that you will continue to receive a portion of your wage or salary if you are sick or have an accident and you’re unable to work. Income protection insurance can provide up to  70% of your monthly earnings any time you’re off work because of injury, illness and unemployment. Income protection comes in two main forms:

Income Protection

This type of policy is designed to provide an income in the event that the insured individual becomes unable to work due to ill health. The level of premium will depend upon the amount of benefit and term selected and most policies cease to pay the benefit once the insured is able to return to work.

Income Protection policies are usually written to retirement age or 60 if earlier.

 

Accident, Sickness & Unemployment (ASU) 

ASU policies were traditionally sold to accompany mortgages, allowing for a regular income to be paid to the insured should they be unable to work due to ill health, an accident or loss of their job.

The product can be split down, and unemployment cover is usually the optional extra available for an additional premium. Benefits are only usually paid for a specified time, for example 12 months.