I am trying to understand the ins and outs of income protection for a friend. Age 55, has her own company business, which she could get a sibling to run in the event of her serious illness, so the company income would not be significantly affected, although she would have to significantly increase the salary to her sibling to keep things going. She has heard that income protection policies may not pay out if they think she can still be paid. In effect she would have to give the majority of her salary to her brother to keep the business running. She earns around 60 k. Is income protection the best option or should she get serious illness and short term income protection ? She would feel that 30 k income protection after a deferral period of 3 - 6 months would be enough to keep things ticking over. She is also considering a separate life insurance policy for around 300 k. She has some medical issues, hypertenion and a history of mental illness. Is she likely to get it for a reasonable fee ? Any thoughts on the best route ? .