Income protection insurance pays you a regular income if you are unable to work due to illness or injury. It helps cover your living expenses until you can return to work or retire.

If you’re unable to work due to illness or injury, income protection insurance pays a percentage of your salary (typically between 50-70%) after a waiting period. Payments continue until you can return to work or the policy term ends.

The amount of cover depends on your financial needs, including living expenses, mortgage payments, and other bills. I can help you to determine the right amount of cover for your situation.

The cost of income protection depends on factors such as your age, health including your BMI, occupation, lifestyle, the length of the policy term, and the level of cover you choose. Riskier occupations or health issues may result in higher premiums.

The waiting period, also known as the deferral period, is the time between when you stop working and when the insurance starts paying out. Common waiting periods range from 4 weeks to 52 weeks. Shorter waiting periods than 4 weeks typically have higher premiums.

It is possible to get income protection with pre-existing conditions, but these conditions may be excluded from cover, or you may have to pay higher premiums. It’s important to disclose all medical history to the insurer when applying.

Income protection can pay out for a specified period, such as 2 or 5 years, or until you reach retirement age. The length of the payout period depends on the terms of your policy.

Income protection payouts are usually tax-free if you pay for the policy with your own after-tax income. However, if your employer pays for the policy, the benefits may be taxed as income.