Can an unemployed individual claim benefits from an Income Protection Insurance policy?

The correct choice reflects the fact that an unemployed individual can claim benefits from an Income Protection Insurance policy if they have previously been employed, as long as their previous employment history meets the policy's requirements. Income Protection Insurance is designed to provide financial support in the event that an individual cannot work due to illness or injury.

Most policies will stipulate that the individual must have a history of paid employment to qualify for benefits. This is because the insurance is intended to replace part of a person’s income that they would have earned from their job. If someone was previously employed and has taken out a policy, they may still be eligible for benefits even during periods of unemployment, contingent on the policy's specific terms and conditions.

Some policies may have conditions about how long an individual has been unemployed or what types of claims can be made based on their employment history, hence emphasizing the necessity of understanding specific policy details. This is why the answer accurately notes that an unemployed individual can claim, provided they have had prior employment.