A regular income if illness or injury stops you working.
Income protection pays a regular monthly benefit if you cannot work because of illness or injury, usually until you recover or the policy term ends. It is optional and aimed at replacing lost salary. Compare the percentage of income covered, the waiting period before payments start, and how long the benefit is paid.
The points that decide whether the cover is worth it.
The share of your salary the policy pays, often up to a capped percentage.
How long you wait before payments begin. Longer waits cost less.
How long payments continue, from a couple of years to retirement.
Own-occupation vs any-occupation wording changes when you can claim.
It pays a monthly benefit to replace part of your income if illness or injury stops you working, after a waiting period. It is different from a one-off payout: it continues while you are unable to work, up to the policy limits.
Critical illness pays a single lump sum on diagnosis of a listed condition. Income protection pays a regular income for as long as you cannot work, whatever the cause, subject to the policy terms.
The definition of incapacity is key. Own-occupation policies pay if you cannot do your own job; any-occupation policies only pay if you cannot do any job. Check which you are buying.
Own-occupation cover pays more often than any-occupation. Compare the definition.
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