- Insurance



Income protection insurance is a policy that replaces your regular income. It is a policy that helps relieve any financial stress especially when you are unable to pay for bills. The insurance policy can also pay you a regular income if you are unable to work due to illness or even disability. The policy in most cases covers you until you resume your job or even retirement. You are allowed to claim as many times as possible while the policy lasts. You can easily obtain the policy from an insurance company or even from a financial adviser. The premiums of the policy are determined by various factors. Some of the factors include:

  1. Job- The nature of the job accounts for when it comes to the issuance of this policy. If one undertakes a risky job, he will pay more as compared to the one who undertakes a less risky job.
  2. Age- The older you are when taking the policy, the more you will pay. This is because in most instances the risk of becoming ill increases with age.
  3. Health- Health is another factor considered when undertaking the policy. A person who is in a good health will pay less to insure himself.
  4. When you want the policy to be terminated
  5. The duration you need before payments are made to you. The longer duration one undertakes before making a claim, the cheaper the premiums will be.
  6. The duration is taken for each claim to be paid for.
  7. The part of your income that is covered by the policy.
  8. One’s hobbies and lifestyle. If one undertakes dangerous hobbies or has certain lifestyle habits such as smoking he will pay more premiums for cover.


In most instances, illness can make one unable to work hence making it impossible to get the monthly income. This is whereby the need for income protection comes in as with the policy, one can get the income until he gets better and resume with the work. The policy helps in maintaining your lifestyle as you get better.

Another benefit of income protection insurance is that you can claim income protection premiums on your tax return.

One might not need the income protection insurance if:

  1. He/she can survive on governmental benefits. The government benefits should be enough to cover one until he recovers from the illness or even injury.
  2. He/she is capable of getting early retirement.
  3. He/she has a spouse or family which has enough income for support in case of illness or injuries.
  4. He/she can access sick pay from the employer. This differs with many organizations because not all of them will provide sick ay allowances to the employees.


In conclusion, income protection insurance is crucial to every employee. The above article clearly illustrates some of the benefits of the policy and the factors which affect the policy. It has also illustrated people who are exempted from undertaking the policy. In case you find it challenging to the income protection cover, you can consult a financial expert for guidance.

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