Income Protection Insurance pays out a regular tax-free income if you become unable to work because of accident or sickness.You can buy cover that will pay you a monthly incomeeither until your planned retirement age, or return towork – whichever is the earlier – or for a limitedamount of time. Short term policies are also availablewhich pay a monthly benefit for up to 12 monthsin the event of accident, sickness and involuntaryunemployment.
Life Insurance (sometimes known as Life Assurance) helps provide financial security for people who depend on you, should you die. There are different types oflife insurance – the most appropriate type for you willdepend on your personal circumstances. Term insurance is the simplest type of life insurance. You choose how long you’re covered for, eg. 20 years(the term), and the policy pays out if you die within the agreed term.
This type of cover is designed to give you financialprotection by providing a cash lump sum if you wereto suffer from a specified accidental injury. You canalso choose additional benefits on top of the standardcover, like cover designed for children.
Critical Illness Insurance pays out a tax-free lump sum on the diagnosis of certain life threatening or debilitating (but not fatal) conditions including heart attack, stroke, cancer and major organ transplants. Policies usually only pay out once.