Imagine this: you're struck by illness or injured, leaving you unable to work. The bills keep piling up, but your income has vanished. This is where Income Protection insurance steps in, acting as a financial lifeline during such unforeseen circumstances.
What is Income Protection Insurance?
Income Protection insurance is a type of insurance designed to replace a portion of your income (usually up to 70%) if you're unable to work due to illness or injury. This replacement income is paid out regularly, often monthly, providing much-needed financial support during a challenging time.
Key Features of Income Protection:

• Waiting period: The time you must wait after becoming unable to work before you start receiving benefits. This can vary (e.g., 14 days, 30 days, 60 days, 90 days, 1 year, 2 years).

• Benefit period: The length of time you'll receive benefits if you remain unable to work. This could be a set period (like 2 years, 5 years) or until a certain age (like 65).

• Monthly benefit (Benefit amount): The monthly benefit is the monthly income insured and it can be up to 70% of your income. In the time of claim, the benefit payable will be the lesser of the monthly benefit and 70% of your pre-claim earning. If your income has reduced since you have this policy, your claim will be paid on the reduced amount.

Who Needs Income Protection?
Income Protection is beneficial for almost everyone, regardless of your profession or income level. It's particularly important for:

• Individuals with high income: Those with higher incomes have more to lose financially if unable to work.

• Self-employed individuals: Without the safety net of sick leave or employer benefits, income protection is crucial for self-employed individuals.

• People with dependents: If you have dependents who rely on your income, income protection ensures they're financially supported during your absence.