Income Protection Insurance

Income Protection Insurance (IPI) is an insurance policy paying benefits to policyholders who are incapacitated and hence unable to work due to illness or accident. IPI policies were formerly called Permanent Health Insurance (PHI).

Income protection insurance policies offer a number of benefits in comparison to other insurance policies such as accident, sickness and unemployment or personal accident (PAS):

Benefits are payable when the policyholder becomes incapacitated and after the deferred period has passed and continue until the earliest of death, recovery of health, retirement or the term of the contract.

Benefits are paid regularly (usually weekly or monthly) and are free of tax.

The insurance company cannot cancel or refuse to renew the policy provided that the policyholder continues to pay the premiums.