Income Protection
Income Protection policies insure the individual against the loss of employment earnings due to the individual being unable to continue employment duties because of an injury or sickness.
Objective
To replace a percentage of a person’s employment income in the event of illness or injury.
Suitability
Suited for any individual or business owner with employment income or self employment income who cannot sustain a loss of income due to a disabling injury or sickness.
Features
Definition of Disability – Defines under what circumstances a person qualifies for benefits. The most liberal definition defines disability as the inability to do the substantial duties of one’s current occupation.
Monthly Benefit Amount – Generally up to 55 percent of employment income.
Deferment Period – This is the period of time when no benefits are payable, generally 4 to 26 weeks
Benefit Period – This is the length of time benefits will be payable. Time periods typically range from two years to age 65.
