What Is Income Protection Insurance?

Whether you’re a young professional or a parent with mortgage payments to keep up, one insurance product you may have considered is income protection. But what is it?

What Is Income Protection Insurance?

Income protection insurance essentially protects you if your income should stop for a while. It means you can keep up on your monthly mortgage or rent payments, bills and keep your family afloat.

Once you know what income protection is and why it might be worthwhile, the next big question is what does it actually cover? Most income protection policies will protect you for time missed at work due to an injury or illness. It’s a long-term policy that can cover you for a lifetime. It can give you peace of mind throughout your working life that it’s always there when you need it most. It’s especially important for people who have lots of financial responsibility on their shoulders.

Furthermore, it’s useful if you know that you would struggle financially just living on sick pay.

However, if you want to protect against losing your job due to redundancy for example, you will need to get separate insurance.

How Is It Different From Critical Illness Insurance?

If you’ve also come across critical illness cover, you may wonder what the difference is? Critical illness cover pays out a lump sum, whereas income protection is paid based on your earnings and is designed to top-up lost earnings due to illness or injury – you can access this cover whenever you need it.

Thinking of getting income protection insurance? Speak to Agentis today. You can tailor most of your income protection policies to suit your family’s needs, and we can search a wide range of insurance providers to find the perfect policy for you. We can run through the illnesses and injuries that are covered and talk through adding more comprehensive cover should you want it.