Income protection insurance pays out an income if you are unable to work because of illness or injury. Income protection insurance aims to provide you with a regular tax-free income if, for whatever circumstances, you are unable to work. The claim will be paid either until you are well enough to go back to work, or until your selected retirement age. It is highly recommended for people with mortgages and a family to support.
There is always an insured income limit. Levels of income protection cover do vary, but may be in the region of 50%-65% of your previous income. Income protection premium rates are based on certain criteria such as; Occupation, health, level of cover, term, deferred period and sex.