A permanent contract that, after a waiting period, pays an income for so long as the policyholder is unable to work due to accident or illness up to a given age, usually retirement. The maximum benefit is circa 60 per cent of pre-disability income and may be level or index-linked. A proportionate benefit is paid to persons returning to work but forced to take lower paid jobs. Income protection cover is available for individuals and groups. Benefits can be immediate or deferred until a certain time has passed. See DEFERRED PERIOD.