Salary continuation insurance is a type of insurance that provides you with income if you cannot work due to sickness or injury. It is a great way of protecting you and your family

Salary continuance insurance, often referred to as income protection or sickness and accident insurance, is a type of policy that pays you an income if you are unable to earn yours due to an injury or sickness. Generally speaking these policies will pay out about three quarters of your normal salary in monthly instalments. There are some that will pay out the full amount but they are rare and cost more. Here are some questions and answers you should ask yourself when considering income protection insurance.

Question number one: What injuries and sicknesses are covered by salary continuation insurance?

Answer number one: There is a wide variation between policies. Generally speaking, there will be a comprehensive list of what is covered in a specific policy and it is up to you to compare different policies and see which illnesses and injuries you want to be covered for and how much you are willing to spend. The more coverage, the more expensive the policy, so it is a matter of weighing up the costs and benefits of each policy.

Question number two: How long does the policy pay for?

Answer number two: Again, there is no hard and fast rule. If you have a temporary illness or injury then it is likely that your policy will payout for the entire length that you are unable to work. If your injury or illness means that you are permanently unable to work then it will depend on your policy. The more expensive policies will often provide permanent coverage, whereas the cheaper policies may have a cap on their length. This is why it pays to shop around.

Question number three: Who should pay for this income protection insurance, me or my employer?

Answer number three: Some companies will offer group salary continuance, often taking the money out of the employee’s salary or offering it as part of a package. You should check with your employer as you may even have this and you may not know it. Generally speaking, bigger companies will have this as standard, so before you buy make sure that you do not already have it.


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