Income Protection Insurance, also known as Salary Continuance Insurance, covers between 75% and 85% of your current monthly salary in the event you become disable and unable to work. Income Protection Insurance usually has a 30, 60 or 90 day waiting period and the policy holder may choose whether to have a policy that pays for a specified number of years or until a specified age (commonly age 65). Thus, if your insurance policies are structured correctly, you may receive a lumb sum benefit from your Total and Permanent Disability Insurance to cover your existing liabilities such as mortgages and personal debt as well as receive 75% of your existing monthly salary to cover your daily living expenses in the event of disablement.

Income Protection insurance premiums are tax deductible, and the benefits are taxable.