There are several differences but the main ones are outlined below.

An income protection insurance policy will pay out if you’re unable to work due to any long term illness or disability. You’ll also get monthly payments until you return to work and can claim multiple times.

With critical or serious illness cover, you can only claim if you get one of the illnesses specified in the policy and it must meet the definition terms. You’ll receive a tax free lump sum payment per claim, rather than a monthly income.

Income Protection Explained “What happens if I get really sick?”

Guess how many paid sick days you’re legally entitled to every year? None. Zilch. Nada. Not a sausage.

Most employers are fairly sound and they’ll cover you for a few days, but it’s rarely more than a handful.

So what’d happen if you were hit by a car or broke your leg really badly or suffered an illness that kept you out of work for months or even years?

Would your savings be enough to get you by? Could you live on the government’s Illness Benefits that maxes out at €203 a week (and you only get this for two years!)?

If you’re single and don’t have any kids, you could probably get by. But it’s looking a bit hairy if you have a family to support.

Income protection Insurance can solve that problem by paying you up to 75 percent of your salary if you’re unable to do your job because of ANY sickness, disability or injury.