If you’ve been looking for income protection insurance online, you may have come across the terms ‘agreed’ and ‘indemnity.’ Agreed-value policies pay out an amount that is specified in the contract. Indemnity policies, on the other hand, pay a benefit which is based on how much you’re earning in the 12 months prior to making the claim. Crucially, insurers are no longer allowed to issue agreed-value income protection policies in Australia, so all available income protection policies are indemnity insurance.