Income Protection

meet your financial obligations if you’re unable to work through illness

Income protection, also known as income protection insurance or IP, is a type of insurance that individuals who have ongoing financial obligations, such as mortgage or rent payments, bills, and family responsibilities, can benefit from. It helps maintain their financial stability if they are unable to work due to illness or injury.

what is income protection?

Income Protection insurance is designed to replace a portion of the policyholder’s income, ensuring that they can continue to meet their financial obligations and maintain their standard of living while they are unable to work. The replaced income is usually a percentage of the policyholder’s pre-disability earnings, typically ranging from 50% to 70%.

Income protection insurance is particularly important for individuals who rely on their income to support themselves and their families and can be designed to align with personal circumstances. Eg: paying out until the mortgage term ends, or until the individual’s expected retirement date.

Income Protection does not need a specific diagnosis for an individual to claim, the main requirement for a claim is that the individual is unable to complete their job safely and effectively– for example, a pilot developing an issue with their vision.

Who could benefit from income protection?

Income protection may be beneficial for the following individuals:

Self-Employed Individuals

Those who do not have the safety net of sick pay or disability benefits provided by employers. Income protection can serve as a crucial financial backup plan for self-employed professionals and freelancers.