Income Protection insurance will provide you with a regular income if you are unable to work due to illness or disability until you are well enough to return to work, or until the end of the policy term. (The amount of cover you can have, depends on your earnings your job, and medical history.)
Long-term Income Protection
This will usually provide a regular income if you are unable to work due to illness or disability for the full term of your policy. If you think you will retire at 68 (The Governments UK retirement age.) and take a policy out for this period, then get an illness at age 40 and don’t return to work, this would pay out the monthly amount agreed, for the rest of the 28 years. Depending on costs and affordability, you can have a longer deferred period (Time you need to be off work.) to bring the costs down if you think you could survive without working for 6 months, this is much cheaper than the 1-month deferred option.
Short-term Income Protection
Some insurers refer to this as the budget option, these will generally only pay out for one or two years for any one illness.
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