Income protection insurance provides you with a regular income if you're unable to work due to illness or injury. It helps cover essential living costs like mortgage payments, bills, and daily expenses until you're able to return to work.

Anyone who relies on their salary to meet their financial obligations should consider income protection. It’s particularly important if you’re self-employed or don't have a comprehensive sick pay arrangement through your employer.

Typically, income protection covers up to 50-70% of your pre-tax earnings. The exact amount depends on the policy you choose. This income is paid out monthly, helping you maintain your standard of living during your recovery.

Payments can continue until you’re able to return to work or until the end of the policy term. Some policies offer short-term cover for a set period, while others provide long-term cover until retirement age.

The waiting period, or "deferred period," is the time between when you stop working and when your payments start. You can choose this period when you take out the policy; common options range from 4 weeks to 12 months. A longer deferred period typically reduces your premium.

Standard income protection only covers you for illness or injury, not for losing your job. However, some policies may offer an optional add-on that provides limited cover for redundancy.