What is the primary purpose of income protection insurance?

The primary purpose of income protection insurance is to cover long-term sickness with a monthly or weekly benefit. This type of insurance is specifically designed to provide financial support to individuals who are unable to work due to illness or injury that lasts for an extended period.

Income protection insurance ensures that policyholders receive a percentage of their income, typically around 50-70%, to help them meet their living expenses during their period of incapacity. This ongoing benefit differentiates it from other insurance types, such as critical illness or personal accident policies, which may provide a one-time payout.

While other options may include elements of financial assistance or coverage, they do not encompass the full scope of income protection insurance's role in supporting long-term recovery and financial stability after an income loss due to prolonged health issues. This focus on sustained financial support specifically for income loss makes it a crucial product for those concerned about the implications of long-term sickness on their financial wellbeing.