Income protection is a type of insurance designed to replace a portion of your income if you’re unable to work due to illness, injury, or an accident. It provides financial support when you can’t earn your usual salary, helping to cover living expenses and maintain your standard of living while you recover or adjust to a new situation.

Here’s a breakdown of what income protection is, how it works, and why it might be useful:

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What Is Income Protection?
Income protection is a policy that pays out a monthly benefit if you are unable to work due to illness or injury. It helps ensure that you have a regular income to cover your living costs - such as rent or mortgage payments, bills, and other essentials.

What Are the Key Benefits of Income Protection?

Security and Peace of Mind
Continued Financial Support
Tailored to Your Needs
Long-Term Coverage
Tax-Free Benefit

Income Protection vs. Critical Illness Insurance
It’s important to differentiate income protection from other types of insurance like critical illness insurance. Critical illness insurance provides a lump sum payment if you are diagnosed with a serious illness, like cancer or a stroke. Income protection, on the other hand, provides ongoing monthly payments to replace lost income due to being unable to work, regardless of the illness or injury. They are designed to complement each other, with income protection covering everyday expenses and critical illness insurance helping with the financial burden of medical bills or treatments but can be taken in isolation.

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It’s worth carefully considering your specific needs and circumstances to determine if income protection is right for you.