What is the definition of Income Protection Insurance?

The Income Protection Insurance provides protection in the event that the insured person is unable to work because of total disability, or he is earning less because than he used to earn.

This kind of insurance pays an income benefit that will provide the insured with steady income even during his disability. This pays all or a certain percentage of your monthly income and may cover against sickness, illness, accident or major trauma.

The payments will continue until the insured person is able to get back to work. There are also some policies that require the insured person to get training that will enable him to be employed and earn an income.

Usually, there is a waiting period before the income payments start. There is also a limit on the age when the insured will be paid the insurance benefit.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage