Income protection insurance is a type of insurance that can act as a safety net if you become injured or too ill to work. While you are not being paid by your employer, your protection insurance can help ensure you receive a regular income.
Depending on the length of your policy, income protection insurance can cover you until you return to work or reach retirement. However, income protection might not pay out if you are made redundant.
Income protection insurance is not the same as payment protection insurance (PPI). While payment protection helps you pay a specific debt, with regular repayments made to the lender, income protection pays you a tax-free portion of your income.