Income Insurance

Income insurance is sometimes referred to as income protection insurance. As the name suggests, this product is focused around what you earn from work.

This type of policy is something that will pay out for those who are unable to work due to something like an injury or an illness (being made redundant is not usually covered by this type of policy). Typically these policies will pay out until retirement or return to work (or in a less cheery fashion, death).

So, with an income protection insurance policy, if you have an illness that prevents you from working you will still get some income from the policy if it pays out, and this would usually be in the range of 50-70% of what you earn. It is worth noting that there is usually an agreed period during which you can't claim, so it is only once this has passed that you will get paid out: the longer the period then the lower your premiums will be. This period is often in the region of one month up to a year.

Income protection is different to PPI which in contrast covers a particular debt, whereas income protection as just mentioned will cover a percentage of your income, tax-free.

There are various types of income protection insurance: these include something called ASU cover, which refers to accident, sickness and unemployment. More generally other policies can cover long-term and short-term income protection.

As for the cost of the policy, there are various factors that can affect this. They include things like the level of cover you want together with the particular job you do and factors such as your health.

Related Articles...

What Is Insurance? What exactly is insurance? It sounds like a very basic concept, but it is important to know what insurance is, in order to work out why insurance is so essential to modern-day activities, and why... Home Insurance Home insurance is one of the most common types of insurance product, and anyone who has a home will be familiar with it. Home insurance is usually contrasted with contents insurance, which is a... Property Insurance Property insurance is a product that applies specifically to property, and has various different types of specific that are subsets of the general umbrella term 'property insurance'. Specific... Saving on Home Insurance Home insurance splits into the bricks and mortar insurance - buildings insurance - and the stuff that you put inside your house such as your valuables - the contents, hence that bit is called the... Motorbike Insurance Motorbike insurance might sound like a bit of a niche category of insurance, but there are actually a huge number of people who ride these sorts of vehicles, and so even within this there are... Pet Insurance People love their pets - whether you are a cat lover or a dog lover, or prefer something like a rabbit, a guineapig, snakes, hamsters or indeed any animal that you can think of, then pet insurance... Vehicle Insurance Vehicle insurance is the category of insurance products that cover, surprisingly enough, vehicles. These can be any sort of vehicle that you can think of, with of course the most common product... Prize Indemnity Insurance Prize indemnity insurance is a purchase that would be considered by someone offering a large prize and thus could stand to lose a considerable sum of money. This form of insurance would mean that... Life Insurance One of the most well-known types of insurance product is life insurance. And this does very much what it says on the tin - it insures against the life of a person. Thus, if the policy holder (the... Travel Insurance One of the most common forms of insurance product is travel insurance. Wherever there is travel involved, there is invariably risk, and infact a range of risks, and therefore an insurance product...