Income Protection What is it?
One of the cheapest and easiest ways to buy your Income Protection Online.

Income protection is an insurance policy that provides a monthly sum for you to live off if you're unable to work due to injury or illness. It is designed to help out in the absence of your usual income and allows you to keep up with all of the monthly costs you are faced with. These can range from mortgage payments, utility bills to even just putting food on the table.

Income protection policies typically pay out the equivalent of 50-70% of your annual salary until you start working again or until the end of the policy term, whichever is sooner. These payments are tax-free. When taking out your policy, you can arrange a deferral period before your payments kick in. Often this is arranged to follow the statutory sick pay you will receive from your employer, and the longer your deferral period the lower the premiums you will pay.

Critical Illness Cover: This cover pays out a one-off lump sum rather than the monthly payments you receive with income protection. And while this kind of cover you can claim only once, income protection insurance affords greater flexibility. It allows you to claim as many times as is necessary while the policy lasts, provided you keep paying your premiums.

Payment Protection Insurance: Whilst this may sound similar to income protection, it is an entirely different product. Payment Protection Insurance (PPI) insures a specific loan repayment, should a person become unable to service this particular debt. Income protection is different in that you are the recipient of the payments, and so can choose how to use this money accordingly.