What are the differences between income protection and life insurance?

Sometimes, insurance products can be confusing because they seem to serve similar functions. In the case of life insurance and income protection, both involve protection against unforeseen events. While it can be unpleasant to think of, it is important that everyone takes a moment to consider what injury, illness or death would mean to the lifestyle of yourself or your family. From reading this post, you should be able to differentiate between these two products, and consider talking further with us about finding a solution that is right for you

Life Insurance

Life insurance is an insurance product designed to provide for your chosen beneficiaries(s), or Estate, in the form of a lump sum in the event of your death or the detection of a terminal illness. Life insurance cover and benefits are usually specific to your situation, and often differ according to factors such as age, lifestyle and type of employment. Many people take out this kind of insurance in order to provide for covering debts, medical and funeral expenses, education for children and purchasing property.

Income Insurance

Income insurance provides people that have suffered illness and injury that prevents them from working with a guaranteed weekly income for a predetermined amount of time. As such, this allows people to continue to pay rent or mortgages, general bills, and still maintain some quality of lifestyle. Income insurance can be personalised to your situation, such as to cover for pre-existing conditions or to provide for a longer disability benefit period. The terms can be very simple – no health check is required upfront, but those policies exclude pre-existing conditions.
Having read this post, you can now think of the types of insurance that you might require in order to secure the lifestyle of yourself or others in the event of your death or debilitating injury or illness. Talk with us today about finding the specific products that are right for you.