Income protection insurance policies cover the insured individual's income in the event of retrenchment, accident or being diagnosed with a terminal illness. When applying for any kind of credit, such as a credit card, personal loan or retail account, income protection will usually be offered as an additional extra. When taking out a larger loan such as a mortgage or when financing a vehicle, income protection may be compulsory. In most cases, you can purchase income protection from the financial services provider who issued the loan in the first place. It is important to note that income protection policies rarely cover individuals for their full income. Usually only a portion, normally around 70% of their gross income is covered. For that reason it is wise to have adequate savings in place and also to consider taking out a credit protection policy when applying for any debt. Before buying income protection, enquire whether the policy will be rendered null and void if you have existing income protection in place.