Income protection insurance can make unemployment or incapacity less stressful as your cover would supply you with an income. This income could then be used as you wanted to maintain any outgoings that you would have to keep up with while you searched for another position or concentrated on making your recovery. You would not have the worry of where to find a substantial amount of money each month or worry about being eligible to claim an income from the State.

When you want to take out income protection insurance you do have to decide how much of your income you want to protect. With the majority of providers you could choose to protect up to half of the gross monthly income you bring home or £1,500 whichever amount was the least. The agreed amount would be the sum of money that you would get back each month for up to the term if needed. You might be able to make a claim on your insurance policy once you have been unemployed or incapacitated for 30 days but some providers might ask that you defer from making your claim for up to 90 days. This can be a long time to wait as you could already be in mortgage or loan arrears by 3 months at this time. Your benefit might continue providing you with your income for 12 months or some providers could offer you a policy that would continue providing your benefit for as long as the 24th month and then it would stop.

There are two type of protection you can take out for your income and then one we are looking at there is income payment protection. Income protection a similar form of cover would pay out longer, usually up to the age of retirement if necessary but it would not pay out for redundancy as would income payment protection.

You could choose to take out income protection for both unemployment and incapacity together. If you do then you could make your claim if you were to suffer from either of the events. You might alternatively choose just to take protection for incapacity alone or for redundancy alone should this suit your lifestyle better. You could also have protection called carer cover included in your policy and if you have this you would be able to make a claim on your policy if one of your close family members became incapacitated and they needed you to take care of them.

Income protection insurance could be a more viable alternative to risking claiming a State income. You would of course have to be eligible to claim any income from them. If you were eligible to claim a State income any income you might be entitled to receive could fall short of your regular income which could leave you with a struggle on your hands.

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