Life is unpredictable to say the least. Accidents, mishaps and sickness hound us at every turn. Income Protection Insurance can be an important part of our financial planning irrespective of whether you have dependents, a mortgage to payoff or other financial commitments.

Income payment protection insurance comes into play in this kind of a situation. Benefits of income payment protection -

When you opt to buy income payment protection, premiums are calculated on your occupation and benefit required (which is generally up to 65% of your gross salary).

It is important to consider your outgoings when you calculate the benefit.

Time period - You would need to decide on how long you can afford to wait before the policy benefit is paid out - 4, 8 or 13 weeks.

Age - In case of permanent incapacitation, you would need to know till what age the benefit will be paid out.

The benefit is generally paid until you reach your retirement age, but will automatically stop if you return to work

In case of the self-employed, the benefit paid is generally calculated on the amount of your taxable income, or profits, during the 12 month period prior to your being unable to work.

Income protection insurance covers you against accidents and ill-health rather than loss of job or redundancy.