What are the key characteristics of Income Protection (IP) insurance?
Pay an ongoing (income replacement) benefit in the event that illness or injury prevents the insured from earning an income from their occupation
Are non-cancellable and guaranteed renewable
Can be sold on a stand alone basis, through often they are included as a component cover in other policies
Usually allow customers to insure up to 75 per cent of their pre-disability income Offer the option of benefits on an indemnity basis or an agreed value basis at the time of application
Cease paying benefits on the earlier of: The insured returning to work, or The expiration of a nominated benefit period
