Income protection does not pay out in the event of redundancy. It is a protection policy that covers you against illness and injury. Â IP (income protection) pays you a regular income if you are unable to work because of sickness or disability and continues to pay out for as long as your payment period allows, this can be anything from 12 months up to retirement age.
If you get fired, made redundant or are partly responsible for losing your job then you won’t be able to claim.
Income protection is designed to benefit you once your sick pay from your employer ceases. You can select a deferred period from 4 weeks up to 12 months, depending on how long you receive sick from your employer.
Many people believe that income protection insurance is only necessary for those in high-income brackets. But this couldn’t be further from the truth. No matter what life stage you’re at, income protection can be the financial safety net you need if you experience an accident or illness that forces you to not be able to work. Â Enabling you to maintain payment of your essential monthly outgoings and reducing the risk of you losing your home.
