Short Term Income Protection
Short Term Income Protection cover pays out if you are unable to work due to illness or injury, however, it will not payout in the case of redundancy. The primary difference between an Income protection insurance policy and a Critical Illness Insurance policy is the amount and frequency of payout.
In an Income protection claim, the payout is periodic and generally a percentage of earnings usually 60% to 70% paid out on monthly basis and the said payment are exempt from tax, as compared to Critical Illness claim which makes a one-time lump sum payout.
The payout under Income Protection policy begins after the end of a pre-agreed period know as a deferral period, the shorter the deferral period the higher the premiums, the usual deferral period is between 13 to 26 weeks. While seeking Income protection cover, it is essential to check with your employer the cover they have in place to support you as an employee for the time off work.
