If you ask a person what their most valuable asset is, those that are lucky enough to be homeowners will probably say their house. Others might say their car or, maybe, their pension fund.

Usually, however, by far the most valuable asset someone has is their potential future income. That is the engine that drives everything. Invariably, financial plans tend to be entirely based on the assumption that a source of earned income is being received up to the point of retirement.

What if this source of income suddenly disappears due to accident, illness, sickness or injury?

Even if your employer does have some sort of sick pay scheme, how long does it last? What if, like me, you are self-employed?

According to Aviva, there is a 40% chance that a 45 year old male non-smoker will be unable to work for one month or more due to accident or illness before their retirement age of 66. For female non-smokers, this becomes 59% rising to an extraordinary 76% chance if that person is a smoker.

Income protection, sometimes called PHI (Permanent Health Insurance), is an insurance policy that can replace up to 75% of a person’s income while they are unavailable for work.

There is tax relief available on any premium being paid; which some financial advisers emphasise strongly. I don’t get too excited about that side of the equation because, as usual when the taxman is involved, there is a catch.

Income Protection can be an invaluable financial cushion that can help keep things normal when the unexpected happens.