Income protection could stop you from struggling with your repayments were you to lose your income. You would protect up to so much of your income against the possibility of unemployment and incapacity and then claim on the policy if you became a victim. The policy would provide you with your benefit which would be paid back tax free over the term of the policy, if needed.

With some providers you could claim your income after you had stood to the first 30 days and with other providers you might have to stand to 60 or 90 days and then put in the claim. Some will date your benefit beck to the first day of unemployment or incapacity. You could have an income that would continue paying over a 12 monthly period or some provider’s offer 24 months of cover if needed. Should you have the security of 24 months cover then you pay more for your premiums so check when taking out the protection.

You should bear in mind that income protection that pays out over the terms outlined above is actually called income payment protection. There is another policy called by the same name which would provide you with an income for up to your retirement age if needed but would only cover incapacity.

You do have to check for exclusions and match these against your lifestyle as they could stop you from being eligible to claim on the policy.

You could choose to tailor protection so that you would only have to pay for the events you needed to cover. For instance if you knew that you could rely on sick pay from your employer then you could just take out redundancy insurance and then make a claim if you became unemployed. If you wanted just to take out incapacity insurance then just pay for this. You could also have protection that would pay out in the event that you suffered redundancy or incapacity.

With income protection insurance behind you there would be money coming into the home which you would be able to use towards whatever outgoings and repayments that you needed to maintain. For instance this income could be used towards the grocery bill each month. You would be able to continue meeting your utility bills by using a portion of it. You would of course be able to keep up with your rent which is essential if you do not want to face being evicted from your home. In fact you would use this income just as you did with your own income.

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