Income Protection Insurance (IPI) is a kind of insurance coverage taken by a person from an insurance firm to get paid in case of an individual’s inability to work or generate income because of a medical condition or some accident. The insurance provider needs to pay some percentage of a person’s total income, generally 70% of revenues is paid. The insured party must pay certain amount as monthly payment. This sort of insurance is actually widely popular in UK.

Positives of Income Protection Insurance

IPI handles a lot of things like a person’s lack of ability to perform his or her job due to disease, accident, joblessness and much more.

As soon as the person indicates a sound reason for his inability to generate income IPI is paid. It’s paid weekly or monthly right up until the individual recovers from his / her sickness or paid right up until death in the event of permanent impairment.

A few insurance companies provide a premium waiver option where an individual needs not to pay for premium the moment he or she starts receiving benefits.

As long as the insurance policy holder pays premium insurance plan has to be renewed.

Cons of IPI

Benefits are not paid in the event the covered person does not continue working, for reasons other than medical conditions as well as accidents.

Benefits are not paid when the disability occurred as a result of an individuals negligence such as, accident due to DUI, harming oneself to claim payments.

Benefits are not paid in the event the person loss his or her revenue due to pregnancy.

Premiums paid aren’t tax free.