Income Replacement Insurance pays you a regular income if you can’t work because of sickness or disability and continues until you return to paid work or you retire. Although the amount of income you are allowed to claim will not replace the exact amount of money you were earning before you had to stop work, you can expect to receive about a half to two-thirds of your earnings before tax from your normal working, this is because some money will be taken off for the state benefits you can claim, and also the income you get from the policy is tax free.
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