Income protection is also known as disability income insurance and is designed to provide a replacement income if the insured person is unable to work due to a disability.

This disability can be caused by either sickness or as a result of an accident.
The mistake a lot of people make is thinking that they do not require this cover as they can access work cover or sickness benefits. This type of thinking has lead to numerous “shocks” and financial embarrassment and unfortunately it is always too late once such an event occurs.

It may also be interest that WORK COVER ONLY COVERS "ACCIDENTS" IN THE WORK PLACE OR GOING TO AND FROM WORK.

In reality a person is 6 times more likely to suffer loss of income resulting from sickness as opposed to accident.

INCOME PROTECTION INSURANCE WILL COVER SICKNESS OR ACCIDENT 24 HOURS A DAY, 365 DAYS A YEAR.

There are enormous choices concerning the length of time an income protection policy benefit is payable (benefit period), the conditions under which benefits are available, and the time a current disability must last before benefits commence (otherwise known as the waiting period).

Expert advice should be sought due to all these factors, and the subtleties of definitions within the policies. Remember most Insurance companies remunerate advisers by way of commissions which are not an additional cost to you so you might as well “get what you are entitled to”.