If you're unable to work due to illness, an income protection plan can pay you a monthly amount - typically 50-65% of your normal income - until you return to work or reach your pre-determined retirement date. The plan gives you peace of mind that, in the event of long-term illness, your family will have an income to put towards outgoings such as mortgage payments and day-to-day living expenses - leaving you to concentrate on getting well.
If you run your own business, you can also use income protection plans to cover your losses if one of your key employees falls ill and is unable to work. The premiums may also qualify for tax deduction (subject to meeting appropriate rules).
You can choose to pay guaranteed or reviewable premiums, which vary according to changes in the cost of cover.
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