Income ProtectionInsurance
The main purpose of this type of insurance is to provide for a loss of income as a result of injury or accident.
It applies if the insured person is no longer able to work and thus unable to secure an income, other than any compensatory payments from State or Employer for example.
It may replace a contractually agreed income or just 'top-up' other available benefits.
The definition of 'unable to work' in some instances may mean 'unable to carry out ANY sort of employment' - not necessarily the employment one is experienced or trained in.
This often means it may be difficult to claim compensation as re-training or other employment may be available.
It is therefore important if taking this sort of insurance that the definition and thus the eligibility of potential claims are properly explained and understood.
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