Income protection policies provide replacement income in the event of an individual becoming unable to work due to suffering from an accident, sickness or disability. There are generally two types of schemes Permanent Health Insurance (PHI) and Accident, Sickness and Unemployment plans (ASU*).

PHI is a long term policy, whose income payment is subject to differing maximums amongst different companies. It cannot be cancelled when in place or payment by the insurance company on the grounds of heavy claims experience.

This policy can have any selected term to their normal retirement age with commencement of payment dates after a selected deferment period has passed.

Income protection is particularly important for self-employed persons, who do not have any form of safety net apart from their own resources and the government.

ASU is a short term, temporary policy, normally provided by general insurance companies. It pays a selected benefit for a specified period of time, after a set deferment period has foregone. It can be cancelled due to heavy claims experience.

* this product is not regulated by the Personal Investment Authority.