01
Life cover
Generally a lump sum intended to help a family manage financially if the insured person dies.
Life cover and income protection
Different events. Different financial jobs.
Life insurance and income protection are often considered together because a household can depend on both a person and their income. They are not interchangeable, and the policy wording matters.
The distinction
One can protect the people you leave behind. One can support you while you recover.
Life insurance is generally intended to provide a lump sum if the insured person dies. Families may use it towards a mortgage, day-to-day costs, education or other commitments.
Income protection insurance is generally intended to provide a monthly benefit while someone is unable to work because of illness or injury. It is designed around an income, a wait period and a chosen benefit period.
Both are subject to their policy terms, including underwriting, exclusions and definitions. This page is general information, not a recommendation.
02
Income protection
Generally a monthly benefit while an insured person is unable to work, subject to the policy terms.
03
Trauma cover
Generally a lump sum for a covered serious condition while the insured person is alive.
Seeing the whole picture
A mortgage is only one part of the household equation.
It can be helpful to separate the questions: what would happen to the mortgage if a person died; how would bills be met if they could not work for months; and what flexibility would a lump sum provide after a serious illness?
Our mortgage protection insurance guide explains why that phrase can describe more than one type of cover. For serious illness, see our trauma insurance and critical illness guide.
Questions people ask
General information before a proper review.
Do I need both life insurance and income protection?
They are designed for different events. Whether either is suitable depends on the household's debts, dependants, savings, income and the policy terms.
Can life insurance help with a mortgage?
A life-insurance lump sum may give a family options for a mortgage and other commitments. The right amount is personal and should be considered alongside the household's wider financial position.
Does income protection work if I am self-employed?
It can be available to self-employed people, but the benefit, evidence of income and terms vary. Read our self-employed income protection guide for a general overview.
Understand how your current cover works together.
Start with a free, no-obligation conversation. We can explain the cover you already have and the questions worth considering.