Beginner's guide to IPI published
Personal insurance
29th September 2008
The Independent has published what it calls a "beginner's guide" to income protection.
According to the daily newspaper, income protection insurance (IPI) is a policy that pays out on a monthly basis in the event of loss of income.
Payment protection insurance is also available to cover loans, credit cards or mortgage repayments.
The cost of IPI varies depending on an individuals requirements, such the breadth of coverage and the length of the payment period.
Factors such as gender, medical history and whether or not the person is a smoker may also be taken into consideration.
Mortgage Introducer reported that income protection can act as a safety net during the credit crunch.
Lobbyist Sara-Ann Burgess highlighted the collapse of Lehman Brothers as an example of employees being plunged into financial uncertainty.
She commented: "Whilst the redundancy could not have been avoided, the financial hardship that will inevitably follow can."
