Some financial struggles are more or less surmountable. But what would you do if you lost your ability to earn money?

Unless you already have an incredible portfolio of assets, a steady income is your best tool for living the life you want. Sadly, it’s quite common for various ailments or accidents to unexpectedly put people out of work for months – or even years.

Income protection can reduce the burden of being unable to work for an extended period of time due to illness or injury. There are two main types of income cover:

Agreed Value

Agreed Value policies are designed for people who are self-employed, or uncertain about their future income for any other reason, or those that would rather have the peace of mind of knowing what they would receive at claim time.

This type of policy is useful because it protects you against fluctuations in your income. It provides up to 62.5% and in some cases more of your agreed income amount, generally tax-free.

You provide evidence of your income at time of application so the amount that is agreed on is what you are paid no matter what your current income is giving you certainty at the time of claim


Indemnity policies are well-suited to anyone with a steady and reliable income, such as wage or salary earners.


When you take out the policy, you’ll be insured for how much you say you earn. And when you make a claim, you’ll need to provide current proof of that income.


Indemnity policies typically provide up to 75% of your stated income amount and is usually taxable.