Income protection insurance can be used to protect your earning capacity. Most people rely on their income through their working life to provide money for living expenses and to generate a surplus for savings and investing.

During your working life, you may not be able to work because of a sickness or accident. Income protection insurance ensures you continue to receive an income even if you can't work.

Generally, the maximum benefit you can insure under an income protection policy is 90% of your income for the first six months and 70% thereafter (you may also be able to add on super contributions).

Various insurance companies have placed fixed dollar values on the maximum insured benefit an individual can receive. For example, it might be $30,000 per month.