No one likes to think that something bad will happen to them. But each year close to a million people find themselves unable to work due to a serious illness or injury.
If you couldn’t work due to a serious illness, how would you manage? Could you survive on savings, or on sick pay from work? If not, you’ll need some other way to keep paying the bills – and you might want to consider income protection insurance.
Income protection insurance is a long-term insurance policy to help you if you can’t work because you are ill or injured. It replaces part of your income if you can’t work because you become ill or disabled, and generally works in the following ways:
- It pays out until you can start working again, or until you retire, die or the end of the policy term – whichever is sooner
- There is a waiting period before the payments start. You generally set payments to start after your sick pay ends, or after any other insurance stops covering you. The longer you wait, the lower the monthly payments
- It covers most illnesses that leave you unable to work, either in the short or long term (depending on the type of policy and its definition of incapacity)
- You can claim as many times as you need to, while the policy lasts