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Income Replacement vs Income Protection

I've seen these kind of products referred to as both Income Replacement and Income Protection - is there a difference between the two?

Replacing and Protecting both sound like they do different things, or are they just different terms for the same product

If they're different, what are the pros and cons of each vs each other?

Ta

Comments

  • dunstonh
    dunstonh Posts: 121,266 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The two different types of income protection are permanent health insurance (PHI) and accident, sickness and unemployment cover (ASU). The latter is sometimes referred to as mortgage payment protection insurance.

    Any other name you see is just a marketing name from that company. PHI is generally higher quality and covers a longer period than ASU but there is no unemployment cover with PHI.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Redrum_2
    Redrum_2 Posts: 898 Forumite
    Thanks. So the one that the Post Office are offering as "lifestyle protection", that's ASU cover, right?
  • ArchieB_2
    ArchieB_2 Posts: 293 Forumite
    Yes, the Post Office product is an ASU product.
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