Income Insurance, also known as Income Protection Insurance, is a type of insurance designed to provide financial protection if you are unable to work due to illness, injury, or disability. It provides a regular income to replace your lost earnings, helping to cover your living expenses and maintain your standard of living during this difficult time.
Income Insurance policies typically offer a choice of benefit periods and waiting periods, which determine how long you need to be off work before you start receiving your payments and how long your payments will continue. This can help you tailor your policy to your needs and budget.
Income Insurance can be particularly important for self-employed individuals or those who do not have sick leave or disability benefits provided by their employer. It can also be useful for anyone who wants to ensure they are protected financially in the event of an unexpected illness or injury.
If you’re considering Income Insurance, it’s important to understand the different options available and to choose a policy that suits your needs. A financial advisor can help you assess your situation and recommend the right policy for you. By investing in Income Insurance, you can help protect your income and maintain your financial security during difficult times.
Income protection insurance pays out a regular cash payment that replaces part of your lost income if you can’t work due to a medium to long-term illness or disability. It can also be called ‘permanent health insurance’ (PHI) – but is not the same thing as private health insurance. Cost depends on your age, income, health, occupation and the benefits you choose.