The purpose of income protection insurance is to ensure the insured person a monthly pension in the case of losing their ability to work due to illness, accidents or similar – temporarily or permanently.

The pension that is paid in the framework of the insurance cover is intended to replace the insured person's income from their work, profession or business (taxable income), and therefore will usually be determined according to this income. This taxable income can be a salary (for an employee), the income of a self-employed person, dividends received by company shareowners or similar.

Income protection insurance is defined by the law as an integral part of the pension fund, and in other pension insurance plans the insured party has to purchase it separately, in exchange for a suitable premium.

Not every profession or occupation can be insured.