Income Protection Insurance

An introduction to income protection

What are the different types of Income Protection?
At it's highest level, there are two types of Income protection policy: 1) Short-term Income Protection policies, which are otherwise known as Accident, Sickness and Unemployment (ASU) products, will generally only pay out for one or two years; 2) Long term Income Protection, these will usually provide a regular income if you are unable to work due to illness or disability until you are well enough to return to work, or until the end of the policy term.

Short Term Income Protection
There are many different ASU policies available, including Payment Protection Insurance (aka PPI) and Mortgage Payment Protection Insurance (aka MPPI). Payment Protection Insurance for example, usually meets the cost of a specific debt, preventing you from defaulting. Mortgage Payment Protection Insurance will cover the cost of mortgage payments for a specified time. Many Short Term Income Protection policies do not need to cover a specific debt; they can simply be used to fund your lifestyle in the event that you lose your income. You can compare policies on our Payment Protection and Mortgage Payment Protection Insurance services or if you'd like more information see our ASU guide.

Long Term Income Protection
Long term Income Protection, however, will usually provide a regular income if you are unable to work due to illness or disability until you are well enough to return to work, or until the end of the policy term. Unlike most Short Term Income Protection policies it will generally not cover you if you are made unemployed or redundant.  When choosing Long Term Income Protection cover, make sure you know exactly which kind of plan you are buying as there are commonly two types, 'own occupation' and 'working tasks'. Due to the relatively complex nature of these products we recommend you phone one of our advisers to discuss your specific needs (call 0800 1422013); the service is free, we compare the whole of the market and we're impartial.

For more information on Short Term and Long Term Income Protection, see our income protection insurance guide.

Read our guides to protection insurance

IP (Income Protection)
How to save money when protecting your income with income protection

PPI (Payment Protection Insurance)
Get the best deal on payment protection insurance

MPPI (Mortgage Payment Protection Insurance)
Mortgage payment protection insurance explained

ASU (Accident, Sickness & Unemployment)
Save money with our guide to accident, sickness and unemployment