Income protection insurance covers any illness, injury or disability that prevents you from working (pre-existing conditions may be excluded).
Serious illness cover only includes specific illnesses that are named in your plan.
Income protection insurance pays out for stress or back pain, while serious illness cover doesn’t, unless the back pain is so severe that it is diagnosed as a permanent disability.
Income protection insurance pays out regular payments until you are fit to return to work.
Serious illness cover pays you a lump sum on diagnosis.
Income protection insurance payments are taxed at a marginal rate at the time of your claim, while serious illness cover payments are tax free.
With illness protection payments, you can claim as many times as you need to, and the plan will remain in place once you continue to pay the premiums.
A serious illness cover plan ends once you have claimed.