When on claim Personal Accident & Sickness and Income Protection policies provide a regular monthly pay-out until you are able to return to work, or if you are unable to ever return to work they will continue to make payments to you until the end of the selected benefit period.
With a Personal Accident & Sickness policy, to claim for an injury, the injury has to be the result of an accident; it cannot be the gradual onset of a condition, for example a degenerative disc, whereas this would be covered with an Income Protection policy, so long as the condition started after the policy was initially taken, or the condition was disclosed and accepted by an underwriter.
A Personal Accident & Sickness policy will offer you a maximum benefit period of 5 years, but benefit periods are most commonly 2 years, and are generally indemnity style contracts. This means the monthly pay-out would be based on your income for the 12 months before the claim. (So if your income is less than stated because you’ve been on an extended holiday or have had a slow year etc. you will come up short).
An Income Protection policy can offer you a range of pay-out periods from 2 years through to the age of 70 depending on your occupation. They can be an Indemnity contract which will look at the best 12 months in the 3 years before the disability, or an Agreed-value contract which means that we can prove your income upfront and this guarantees that the insurer will not review or reassess the monthly pay-out shown on the policy in the event of a claim.