You probably succumb to the odd day off now and again for cold and flues. However, what if you were prevented from earning your livelihood from a more severe sickness or injury? What if you were not able to go to your work for a longer period? In such a case, how would you keep up keep up your mortgages, loans, fees, rents, and everyday living expenses? Not to mention but what about your medical fees and rehabilitation costs? This is where Income Protection comes into the picture.

Income Protection insurance is a great way to secure your lifestyle if something does go wrong. After all, it is designed to protect your greatest asset- income. Say, an accident leaves you incapacitated to work any further, then your Income protection policy will keep your income coming in. under this insurance, you are not paid a single lump amount but in regular monthly amounts, just as your pay would have been. Usually, companies offer 70-75% of your gross salary in the insurance coverage.

Wikipedia states the benefits of Insurance Protection as:

Benefits are payable when the policyholder becomes incapacitated and after the deferred period has passed and continue until the earliest of death, recovery of health, retirement or the term of the contract.

Benefits are paid regularly (usually weekly or monthly) and are free of tax.
The insurance company cannot cancel or refuse to renew the policy provided that the policyholder continues to pay the premiums.
A waiver of premium option may be provided whereby premiums for the IPI policy are not required while benefits are being paid from the policy, but the policy cover continues as normal.

When shopping for the Income protection insurance, you must consider following points:

• Is the company offering you a guaranteed or indemnity contract?
• Is the contract cancellable or a non-cancellable contract?
• How much % of your income can you insure in the contract?
• How much is the minimum waiting period?
• How does the benefit period operate?
• Will you be covered if you become unemployed?
• Would there be any added benefits?