It is a term that is used for insurance policies that will safeguard against you losing your income. Different policies can be taken out for different situations and you have to ensure that you choose the right type for your needs.

All policies would pay a fixed amount that was determined at the outset when you took out the policy after a period of waiting. They would cover against the fact that you might suffer illness for a period of time or you might not be able to work after being involved in any accident. The policy can also protect against the fact that you might be made redundant and have to find a new position.

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