What percentage of income is typically covered by income protection policies?

Income protection policies are designed to provide financial security in the event that an individual is unable to work due to illness or injury. The typical coverage offered by these policies is often around 75% of the individual's gross income at the time they became unable to work. This amount is strategically chosen to provide a balance: it offers substantial financial support while still encouraging individuals to return to work when they are able.

Coverage at this level helps ensure that claimants can maintain their financial obligations, such as mortgage payments, living expenses, and other crucial bills, until they are ready to resume their working life. It is important to note that while policies can vary and individuals may choose different options based on their circumstances, a coverage level around 75% is standard in the industry.