Income Protection, otherwise known as Sickness & Accident Insurance, or wages insurance, pays you a benefit (up to 75% of your gross income) for a period of time selected by you at time of application.

These policies are made up of three things:
1) Insured Amount: Up to 75% of your gross salary (if employed) is covered if you cannot work due to sickness or injury.
2) Waiting Period: A defined amount of time, usually 14 or 30 days that you wait until your benefit is started. (instead of an excess like car insurance, a waiting period applies instead)
3) Benefit Period: You can select either 1 year, 2 years, 5 years or Till Age 65 (depending on your occupation and age) that the maximum amount of time the benefit will be paid for.

Tip: The shorter the waiting period, the higher the premium and the longer the benefit period, the higher the premium.

Be careful when selecting a Sickness & Accident policy as opposed to an Income Protection policy. What the difference? See Here:

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