Income protection is a type of insurance that pays you a regular income if illness or injury prevents you from working. It’s designed to replace some or all of your income if an illness or injury prevents you from working. You can also get extra cover for dependents as well as payouts for permanent disability and critical illness benefits. So how does it work? Let’s take a closer look…

This is a question that many people ask themselves, especially when they’re in the prime of their career. If you had to take time off work due to illness or injury, what would happen to your income? Would you be able to pay the bills and support your family?

Income protection insurance can cover you for a wide range of circumstances that prevent you from working. The only way to know how much cover you need is by talking through your financial situation with an independent financial adviser – it’s important that they have no conflict of interest so that they can provide impartial advice about suitable products.

You may also be entitled to sickness benefits or invalids benefits from Work and Income. This is a government agency that provides help for people who are unable to work due to illness or injury.

To apply for these you will need to prove that you are unable to work due to your illness, and the amount of benefits you get depends on your income and assets. If a doctor has confirmed that you are too ill or injured keep this certificate with your Income Protection policy for future reference if needed.

The amount you could receive will depend on your income and how much it’s worth. If your employer provides income protection, the amount of the benefit will be calculated as a percentage of your gross income, with a maximum guaranteed benefit of £150,000 per year (for example, if you earn £60,000 per year, then this means that if you become disabled permanently or totally incapacitated for work because of an illness or injury sustained while performing services under an employment contract).

The amount of time that your income is protected for depends on the policy you choose. Some income protection policies will only pay out for a maximum of 12 months, while others can last 24 months, 60 months or even up to the maximum age of 70. If you have a chronic illness or disability then it’s important to look at the length of time they offer as this could mean a lot of money saved over time.

When considering which policy is right for you, think about how long your company allows employees to take off work when they are sick and if this would cover what’s on offer from Income Protection insurance. Your employer should tell you how much sick leave your company offers as well as outlining how long workers may be off work due to an illness or injury before their employment is terminated by defaulting on their obligations under the Employment Standards Act (ESA).

• Addiction to alcohol or drugs (dependent on the severity of your addiction)
• Suicide
• Workplace injuries that don’t occur while you’re at work. This includes self-inflicted injuries, like slipping on a wet floor or falling off a ladder while working on your house. It also includes accidents that happen because you were trying to do something during work hours, but weren’t officially working at the time (like driving yourself home after finishing an early shift).
• Significant Exclusions
  • (Drug/Alcohol Abuse, Self Harm, Pre-Existing Med Conditions) – You may not be covered to claim against any pre-existing medical conditions you are currently receiving or have received treatment on in the past this may be excluded. You are not covered for drink and drug related issues, self-harm or elective cosmetic surgery. If you partake in any hazardous pursuits, i.e. pot-holing, mountaineering or motor-cross for example, this may also be excluded however this depends on the individual insurer.

You may have heard of income protection insurance, but you don’t really know what it is or how it works. Well, that’s fine. The truth is that not everyone needs income protection insurance and those who do are often unaware of the benefits they could be getting out of this type of policy. The good news is that if you’re reading this then chances are you’ve already decided to get an income protection policy! This will teach you everything there is to know about these types of policies so let’s get started!

• Income Protection Insurance protects your ability to make money

The main purpose behind obtaining an Income Protection Insurance plan is so that if something happens where you can no longer work for a period of time due to illness or injury (or any other reason), then your finances won’t suffer as much as they might otherwise have done so.*

Because it can give you peace of mind and security as well as cover any financial risks that come with illness or injury, whether you’re at work or not. It’s worth considering if you want to be covered in case anything happens to your income but don’t know where else to turn.

Life insurance (or life assurance) is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person (often the policyholder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policyholder typically pays a premium, either regularly or as one lump sum. The benefits may include other expenses, such as funeral expenses.

Life policies are legal contracts and the terms of each contract describe the limitations of the insured events. Often, specific exclusions written into the contract limit the liability of the insurer; common examples include claims relating to suicide, fraud, war, riot, and civil commotion. Difficulties may arise where an event is not clearly defined, for example, the insured knowingly incurred a risk by consenting to an experimental medical procedure or by taking medication resulting in injury a.th

Life-based contracts tend to fall into two major categories:

• Protection policies: designed to provide a benefit, typically a lump-sum payment, in the event of a specified occurrence. A common form of a protection-policy design is term insurance.
  
  
• Investment policies: the main objective of these policies is to facilitate the growth of capital by regular or single premiums. Common forms (in the U.S.) are whole life, universal life, and variable life policies.