Income protection policies include insurance policies that provide benefits covering the loss of future income as result of a health or disability event, or unemployment. Unfortunately from 1 March 2015, premiums paid by natural persons in respect of income protection policies will no longer be deductible if the policies are aimed at income protection.

However the good news is from 1 March 2015, any policy benefit paid under such a policy will be tax-free, irrespective of whether the pay-out takes the form of a lump sum or annuity. Consider the scenario of a self-employed accountant for instance. If they fall sick or have an accident and are unable to work for three months not only is it a loss of income, there is also the potential of loss of customers and future business, which only adds to the burden. An income protector will ensure that all expenses are paid and a continuous flow of revenue until such time that he/she is back on their feet.

Business owners are generally the key individuals in the enterprise and if they are not present for prolonged periods the business generally suffers a loss as not all staff is committed to ensure the smooth running of the business. However income protection safeguards the continuation of income for personal living expenses and business overheads.
Our greatest asset is indeed our ability to provide an income month after month. I personally believe it is frighteningly one of the most under planned for benefits. Fortunately there is a solution to protect you, we insure our homes, our cars so why not our incomes?