Other types of income protection insurance
Payment protection insurance and short term income protection insurance (along with mortgage payment protection insurance and accident, sickness and unemployment insurance) can provide a monthly income if you can’t work due to an accident, illness / injury or, often as an optional extra, unemployment.
There are important differences between these products and income protection insurance, the most notable being that they will only pay a percentage of your income for a limited period of time – usually between 12 and 24 months.
In contrast, income protection insurance will pay out for as long as you are unable to work (up until the policy expires). Shorter payment periods are available from some insurance companies, which reduces the cost of these plans.