Income Protection plan is a policy that pays out if the policy holder is unable to work due to injury or
illness. It usually pays out until retirement, death or they return to work.

There is only a minority of employers who support their staff for more than a year if they’re off sick from work which is why it is recommended everyone of a working age should consider an Income Protection plan. 

The cost of an income protection plan depends on an individual’s health, whether they smoke and the type of job they are in.

Income Protection usually pays out 50%-70% of earnings tax free.

It is only paid out once a pre-agreed period has passed, generally ranging from 1-12 months after a claim.

The longer the period, the lower the premiums. The default period is usually 13-26 weeks.

This may sound confusing but don't worry your advisor will tailor a policy around your personal circumstances so you get the level of cover you need when you need it most.