Here is how income protection insurance policies tend to work:
Should you become incapable of working due to sickness or an injury, or lose your income through redundancy, you could claim on your policy and receive financial support.
This financial support would usually entail a monthly tax-free sum (typically of up to 65% of your usual earnings) paid directly into your bank account, allowing you to keep in control of your finances.
You would normally receive these payments following a period of you being off work, which is known as the ‘deferred period’. This ‘deferred period’ is usually chosen by you when applying for an income protection insurance quote – typically ranging from 30 days back to day one to 180 days.
On a short term income protection insurance policy, you could continue to receive payments from your policy for as long as you require within the period stated by your insurer, usually twelve months.