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.
Income protection insurance news: 20 February 2012
