Income payment protection would supply the policy holder with an income that is tax free if they should suffer accident, illness or redundancy. Some providers also add in carer cover which means a claim can be made on the policy if you need to take time from work to take care of a close family member who had become incapacitated. A policy can be taken with an independent provider and this is one of the cheapest ways for you to take out a policy. You would also be able to tailor the cover to suit your lifestyle by choosing protection for both redundancy and incapacity together, just for unemployment or just for incapacity alone.

The income that you get back each month from your policy would depend on the amount of your monthly income that you choose to protect. This amount would need to be agreed by your provider as all will set a limit. Generally you would be able to insure up to £1,500 or half of your gross monthly income whichever was the least amount. This income is paid back after a period of suffering one of the events you chose to protect. Generally this would be in the region of 30 to 90 days depending on your provider. Your benefit might continue paying out for 12 months or your provider could offer 24 months of cover. As the terms can differ substantially you really do need to check the small print to determine when cover would begin and end.

Income payment protection should not be confused with a form of payment protection insurance that had a very similar name which is income protection insurance. This type of cover would only provide you with an income if you were to become incapacitated and it would pay out for up to the age of retirement if it were needed.

With income payment protection to fall back onto you would have money that you could use as you wanted towards any essential outgoings you wanted to maintain. You might choose to use some of this income towards being able to keep food on the table for your family. You would also have the income to be able to continue meeting your rent and your utility bills. In fact you could use the income just as you did with your own income. You would not have the worry of having to make your savings spread out nor would you have to risk being eligible to make a claim for an income from the State. State incomes often do match your own income which again could leave you have to spread out what little money you have or juggling bills around with the hope that you would be able to catch up on them in the future.

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