ABSTRACT
Experts generally agree that protecting income is vitally important. Income protection pays out for an extended period of time. Precautionary saving is more flexible than an insurance policy. Some of the world’s richest people become rich due to residual income. In the UK, some people have sought to build a source of residual income by investing in buy-to-let properties. In the UK, the buy-to-let market has experienced a massive growth. The complex interaction between income protection and state welfare support means that it is not clear to consumers how much replacement income they are buying and how much net income they will have as a result of the insurance. Private provision, whether it is an income protection policy or an alternative source of income, should act as a pillar of financial security, ensuring a continuous flow of income when one's health prevents him/her from working and earning a living.
