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Did you know what is IPI? An IPI or Income Protection Insurance is an insurance policy introduced by UK that benefits the holders of the policy who are unable to work due to incapacitation. It can be due to reasons including accidents or illness.

Also referred to as Permanent Health Insurance in a formal way, IPI benefits the holders in the following ways

- When the policy holder is in the condition of incapacitation, the benefits are payable
- Benefits are tax free and are paid in constant time intervals ( in a week or month)
- The policy cannot be cancelled or renewed by the insurance company
- In some cases, there may be a waiver of premium option and in this case, premiums are not required and benefits are paid at the same time. Interestingly, the cover of the policy continues as usual.
In spite of the benefits, one must be careful while choosing the Income Protection Insurance policy because it may not be applied if the reason is not illness or accident. The deferred period is long and there would be a decrease in premiums on an increase in deferred period.