Income protection: five things to check before you renew

For most working people, the ability to earn an income is their most valuable asset. Income protection is designed to replace part of that income if you cannot work due to illness or injury. Before your policy renews, it is worth checking these five things.

1. Your benefit amount

Has your income changed? Your cover should reflect what you earn now, within the limits of the policy.

2. The waiting period

This is how long you wait before payments start. A longer waiting period can reduce premiums, but you need savings to cover the gap.

3. The benefit period

This is how long payments can continue. Shorter periods cost less but cover less.

4. Definitions and exclusions

Policies differ in how they define disability and what they exclude. Price is only part of the picture.

5. How it fits with your other cover

Income protection works alongside life, TPD and trauma cover. Our insurance and protection advice looks at the whole picture, and our end of financial year checklist includes a quick insurance review.