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...

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... Health Insurance One of the most common insurance products is health insurance, a broad umbrella category that covers any sort of insurance product that helps an individual mitigate against the expenses that are... Contents Insurance Contents insurance is a type of insurance product that covers the items that you have - the contents - of your home. There are a range of different providers of contents insurance out there on... Van Insurance Most people know about car insurance, but what about van insurance? Clearly if you drive a van then you need to know about van insurance. There are various different types of van insurance which... 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... Crop Insurance There are two main types of crop yield insurance available, which come under the category of types of agricultural insurance product. It is self-explanatory what crop insurance guards against -... 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... Types of Car Insurance There are various different types of car insurance product that are available in the UK. The minimum level of cover that is available to meet legal requirements is a product called third party... GAP Insurance If you have bought a car in recent times, then you will probably have come across GAP insurance as the vendor will have asked you if you want GAP insurance or not. If you are not familiar with... Payment Protection Insurance Until a few years ago, not many people would have heard of Payment Protection Insurance, commonly referred to as PPI. Now it is almost inescapable, with TV adverts and text messages bombarding...