Types of Income Protection Cover

Short-term income protection

Short-term income protection refers to policies that will pay out a maximum of 12 benefit payments in any one claim period. This type of income protection insurance can offer cover against accident & sickness, unemployment, or all three, depending on the policy you choose.

Long-term income protection

As the name suggests, Long-term income protection is designed to pay out for a longer period of time. This is more than 12 months and anywhere from retirement until age 70, depending on the individual insurer. For unemployment cover, most long-term policies pay out for a maximum of 12 months, and there are also restrictions on the number of claims that can be made during the lifetime of a policy.