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Difference between income protection and payment protection

Unum explains the difference between two covers that are often muddled up.

Payment protection insurance is a very different type of cover to income protection as it is designed to meet a separate need.

Payment protection insurance is also known as accident, sickness and unemployment insurance.  It pays out following injury, illness and redundancy, typically for just 12 months. After that, the payments stop, even if you have a serious long-term illness.

Income protection pays you a replacement salary if you suffer an illness or injury and are unable to continue working. This then pays out until you recover, or until you reach retirement age and salary so you have an income to pay for all the essentials like your family bills, mortgage and council tax.

In many, if not most, cases income protection will provide more security for workers concerned about long-term illness or injury.

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Difference between income protection and payment protection
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