If you couldn’t work due to an accident or  sickness you may need to support yourself financially for a long period of time.

Income protection protects your income. It pays out a tax free sum of money to you each month if you can not work due to sickness or injury. Generally it will pay out 50/70 percent of your monthly salary.

There are 2 types of income protection.

1) Short-term Income Protection will usually pay out for one or two years. After this period you need to go back to work for usually 6 months before you can claim again on it.

2) Long term Income Protection will provide a regular income to you right up until you are unable to go back to work (or to the end of your policy)regardless if its 2 years or 10 years that you are off sick for.

You’ll benefit most income protection if you are self employed or if your company does not provide adequate sick pay relief.