Income protection insurance and life insurance are two types of insurance policies that serve different purposes. Income protection insurance, also known as income protection cover, is a policy that provides a monthly income if you become unable to work due to illness or injury. This type of insurance is designed to help you meet your ongoing living expenses, such as rent or mortgage payments, and utility bills, while you are unable to earn an income. Life insurance, on the other hand, is a policy that pays out a lump sum to your beneficiaries in the event of your death. The purpose of life insurance is to provide financial support to your dependents or loved ones after you are gone. This can help them cover expenses such as funeral costs or inheritance tax.