Income Protection Insurance

Income protection insurance (also known as salary continuance) is designed to provide a regular income in the event that you are unable to work due to sickness or injury. Generally, income protection insurance provides a regular income during a period of disablement for up to a pre-determined and agreed benefit period. Generally, the benefit amount payable is up to 75% of your income.

Factors to be aware of:

• Most income protection policies offer a range of waiting periods before you start receiving your insurance benefit (with options normally between 14 days and two years). The shorter the waiting period, the more the insurance will cost.
• You can also choose from a range of benefit payment periods, with maximum cover generally available up to age 65. The longer the benefit period, the more the insurance will cost.
• Income protection insurance is important when borrowing, as it can help meet interest payments if you are unable to work due to illness or injury.
• You should ensure your insurance cover is adequate for your needs. Under-insurance can present a serious problem.