Income protection insurance provides a regular monthly income if you are unable to work due to illness or injury. It replaces a portion of your salary so you can continue paying essential expenses such as your mortgage or rent, bills, and daily living costs while you recover.

Income protection payments begin after a deferred period, which is the waiting time between being signed off work and when benefits start. Common deferred periods include 4, 8, 13, 26, or 52 weeks. Choosing a longer deferred period usually reduces the cost of your policy.

The benefit period determines how long the policy pays out during a claim. Depending on the policy you choose, payments may continue for:

• A fixed period (for example 1, 2, or 5 years), or
• Until you return to work, retire, or reach the end of the policy term.

Income protection typically covers most illnesses and injuries that prevent you from working, including both physical and mental health conditions. 

However, policies may have exclusions, so it’s important to check the policy details and definitions before purchasing cover. Our team of insurance specialists and protection consultants will run through any exclusions that you need to be aware of when taking out a policy through us.

No, income protection insurance does not cover redundancy or unemployment. It is designed specifically to protect your income if you cannot work due to illness or injury.

The cost of income protection depends on several factors including:

• Your age
• Occupation
• Health and lifestyle
• The amount of income you want to protect
• Your deferred period and benefit period

At Pangea Life, we will work to tailor your policy to suit your budget and level of protection.