You can take out income protection insurance cover to guard against a loss of income due to accident, sickness and unemployment. You would insure a portion of your own income against these events, which would be pre-agreed upon with the provider at the time of taking out the insurance. The sum you insured would be the income you received back, tax-free if you made a claim and would go towards maintaining all of your essential outgoings.

If you were to lose your own income and have nothing to fall back on then life could become very difficult not only for you but for your whole family. You might have to make drastic cutbacks and be scrimping and scraping to be able to continue meeting your essential outgoings. You could also have to put off some bills in the hope that you could catch up on them in the future. With protection you would have a sum of money to rely on towards servicing any bills that came into the home each month, which would make life a lot easier while you searched for work or recovered.

An independent payment protection provider would be the cheapest way to take out income protection insurance cover. You can shop around online and compare protection premiums and one of the cheapest will come from independent leading payment protection provider British Insurance. They offer protection that comes with few exclusions, which need checking against your circumstances and you are provided with the information on the website of British Insurance to do so. You would also get a policy that would come with no excess as it would be dated back to the first day of your unemployment or from you being incapacitated. You could claim on the protection once you have reached the 30th day and would then receive an income for up to a maximum of 12 months.

When comparing the cost with other providers you would have to check the terms to find out when you can put in a claim as some providers might extend this up to 90 days. You also need to find out how long the protection would payout up to as with some providers it could be 24 months.

Income protection insurance cover is a far more suitable plan than relying on being able to claim benefit from the State if you are incapacitated or become redundant. You would have to meet certain criteria in order to get any benefit and could have to wait some time before seeing any money. The money you could be entitled to claim could fall far short of the income you are used to bringing home and this could leave you without enough to maintain all of your outgoings. If you were thinking of using savings as a means of getting by while you found work or recovered this could also be a let down as it could take you many months to recover or find a job and savings might not last this long. At least with a policy you would have between 12/24 months with some income towards your outgoings.

Related Posts

• Income protection insurance provides a tax-free sum if unemployed or incapacitated
• Cover a loss of income with income protection
• Consider income payment protection for security
• An income protection UK policy needs shopping around for to save money
• Income payment protection provides a sum towards your essential outgoings