Income protection insurance cover could make a great deal of difference as to how you managed during your incapacity or unemployment. The income supplied by your policy would be the amount that you chose to insure, up to a limit, and would be supplied between the 30th and the 90th days of losing your income to one of the events you chose to protect against. Tax free payments would continue for between 12 months and 24 so you would need to check the terms offered by your chosen provider before taking out the protection.

Another factor that goes towards determining how much you pay for your premiums each month is the level of cover you choose. Standard income protection insurance cover would protect against unemployment and incapacity together. However you might not need to take protection against both events if for example your employer provided a good sick pay plan. If this were the case then you might just want to protect against the possibility of losing your income to redundancy. However if you do not get sick pay then you could just take protection against the chance of incapacity caused by accident or sickness.

The income your policy provided could be used however you wanted and when you wanted, to pay whatever bills you wanted. You might choose to use some of it to maintain your utility bills to ensure that the home was warm and kept out of the dark. You would also have the money to go shopping to keep food on the table for your family. Of course there could also be many other outgoings which have to be serviced during the time you are searching for work or recovering and you could use your policies benefits to fall back onto.

If you were relying on claiming an income for the State while you were unemployed or incapacitated then you might be let down. First you would have to ensure that you would be eligible to claim an income and there are many factors that could stop you. For instance if you have someone living with you in full time employment then you might not be eligible, the same could apply if you had savings over a certain amount. Even if you could apply successfully for State benefits the income you might be entitled to receive might fall short of the income you brought home when you were working. This again could mean that you are left struggling to maintain your essential outgoings from month to month.

If you should rely on using savings to get you through your unemployment or incapacity then again you could fall short. You would not know how long you would have to turn to your savings to keep maintaining your essential outgoings as it could take many months before you were able to find work or make a recovery and get back to your own job. By this time your savings could have run dry and you would be left with problems. A monthly premium for income protection insurance cover could stop these worries.

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