This insurance will replace part of your income (tax-free) if you are unable to work for a long time due to an illness or disability. It will continue to pay monthly until you are able to return to some kind of work or reach retirement, whichever is sooner.

Most policies will have a waiting period, the longer you wait the lower the premium. PHI may not be available to people working in dangerous occupations or who have existing health problems.

There are other providers of Payment Protection Insurance (Short-Term Income Protection) and other products designed to protect you against loss of income. For impartial information about this kind of insurance, please visit www.moneyadviceservice.org.uk