In short
Income protection pays a regular, usually tax-free income if illness or injury stops you working, until you recover, retire, or the policy ends.
Income protection replaces part of your earnings, usually a percentage of your income, if you cannot work because of illness or injury. Rather than a one-off lump sum, it pays a regular income to help cover everyday costs such as your mortgage, rent, and bills while you are unable to work.
Payments begin after a chosen deferred period and continue until you are able to return to work, reach the end of the policy, or retire, depending on the type of policy. How a claim is judged depends on the incapacity definition, with own occupation generally the strongest.
Key features to compare include the deferred period, how long benefit is paid, the incapacity definition, and whether premiums are guaranteed or reviewable. Income protection is often considered a core part of protecting a household's finances against long-term illness.
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