It is imperative when buying income payment protection that you do not get it confused with a similar named policy, income protection insurance, as the two of them are very different. It is imperative that you know the difference between each to ensure that you take out the correct insurance policy for your needs and circumstances.



Your policy would provide an income each month if you should find yourself unable to work after being involved in an accident or if you become ill. It would payout after a period waiting for up to the age of retirement if it was necessary. However it would not payout if you should lose your job due to such as being made redundant.

Income payment protection on the other hand would payout for a shorter length of time which is usually between 12 months and 24 months and then it would cease regardless. It would also provide you with a replacement income should you should lose your job to unemployment or if you should become unable to work due to suffering an accident or an illness. You would have to wait a period of time before putting in your claim; this is usually between 30 and 90 continuous days of unemployment or of incapacity.

The amount you will have to payout for your policy would depend on different factors. Your age is taken into account as is the amount that you wish to protect. All providers will allow you to protect up to a certain amount of your monthly income. This is the amount that if and when you put in a claim is paid back to you, tax-free.

Having something to rely on when you lose your own income is essential if you wish to keep out of debt. It is also essential that you keep up with your mortgage repayments, and your policy would allow you to do this. Keeping up with your mortgage is imperative if you are to keep out of arrears, if you get behind into arrears and cannot afford to catch up then the lender will have no option but to take you to court to seek repossession of your home. In just a few weeks you could be evicted and would lose everything you had built up over the years.

You do have to check to make sure that a policy would be suitable for your conditions because different providers will put in different exclusions. There are some providers that could add in many while others add in just the bare few. However there are some in all policies that do need to be found and checked. Once you have done so you will have a policy that can act as a safety net on which to fall when you need one. Income payment protection is cheaper when taken out with an independent provider who specialises in selling payment protection. They can back up their policy with their experience in selling cover and are there to answer any questions you may have about the product.