Income Protection
Income Protection plans are designed to provide you with a regular income if you are unable to work due to an illness or having had an accident resulting in a loss of earnings. There is often a deferred period that you agree to typically 1, 3, 6 or 12 months before the benefits are paid. The longer the deffered period then the lower the premiums will be.
You need to ensure that if you are employed that your employers benefits cover the deferred period or that you have sufficient emegency funds to cover this time.
Some plans will also allow you to protect house persons who are not employed. You can also protect your income for a specific period usually until retirement age.