Income protection insurance can be your safety net if you should find yourself out of work through suffering from an accident, being off work long term sick, or finding yourself unemployed through no fault of your own. It can bring peace of mind that you would have the money each month to carry on living your lifestyle in the manner you are accustomed to and pay your essential outgoings.
Income protection insurance can, providing you have made sure that a policy is suited to your circumstances, give you a tax-free income once you have been out of work for s set period of time. The period you have to wait before you can make a claim is determined at the time of taking out your policy and typically can be anywhere between the 31st day of being out of work up to 90 days. Once the cover has started you would then have an income each and every month you were out of work for up to 12 months and with some providers for up to 24 months.
While the cover can be a great product to have, you do have to ensure that it would be suitable for your circumstances. All income protection insurance policies do have exclusions and these can be found in the small print of a policy, some of the most common reasons included are if you are only working part-time, suffering from an illness at the time of taking out the policy or if you are retired.
You do have to be careful when buying income protection insurance and the best way to buy the cover is with a standalone provider of income protection insurance. Beware of the high street lenders when thinking of buying payment protection cover as the cover is generally dearer with little or no advice given. The specialist will always give you the best deal and this means that you get the cheapest premiums along with the best advice.