What does income protection insurance cover?
Income protection covers most illnesses that leave you unable to work – but there are different definitions of incapacity and levels of income protection cover. These are:
- Own occupation – you are unable to do your current job
- Suited occupation – you are unable to do your own job or a similar one that suits your qualifications
- Any occupation – you are unable to do any paid work
The type of cover you choose will determine what level of incapacity will trigger a pay out, so as always with insurance policies it is worth reading the policy details thoroughly before signing up.
If you choose ‘any occupation’ cover, then you can only claim if you are too ill to do any job.
‘Own occupation’ and ‘suited occupation’ cover tends to be more expensive as you can claim if you are unable to do your current job or one that is similar.
What income protection insurance doesn’t cover?
Income protection cover usually comes with a detailed list of the different illnesses and situations it won’t payout for. These exclusions tend to include some of the following:
- Any pre-existing medical conditions
- Self-inflicted injuries
- Illnesses or injuries that are sustained during criminal acts