If you were to sit down and add up all of your essential outgoings that you paid out each month then you could be in for a bit of a shock. Especially if you have a huge mortgage and loans to cover each month. You could stop still in your tracks when you have also added on bills such as water, gas and electric and also the grocery bills. Now stop and give some thought to how you would be able to maintain and carry on paying all of these if you should lose your income. It's not a very pleasant thought is it? However if you have an income protection insurance policy behind you, then you would not have to even give it a second thought if you suffered from an accident, sickness or unemployment.



This type of insurance policy would do just as the name suggests, it would insure your income. It would do this by replacing your lost income with the amount you insured against when taking out the policy. The amount you had to payout for the premiums for the policy would depend on how much insurance you needed and your age. One of the main outgoings that you would be able to cover would be your mortgage and this would give you enormous peace of mind.

It is imperative that you do keep up with your mortgage repayment as getting behind means that you are at risk of losing your home. The lender can choose to take you to court if you break the mortgage agreement by just one month. However most will usually try to come to an agreement with you so you are able to catch up on arrears. But if you do not have an income coming in and cannot possibly know when you would be earning again, coming to any agreement would be impossible.

It is also essential to keep up with loan or credit card repayments each month and this is also possible with income payment protection. You would be able to keep your credit rating up to date and this is essential if you want to borrow again in the future. You would also avoid a court appearance. You can also continue to meet any other payments that are needed to keep everything running as smoothly as possible each month.

Your income protection insurance would payout after you had been unemployed or incapacitated for between 30 and 90 days depending on the provider of the policy. Some will also backdate your cover to the first day of you being unemployed or of being incapacitated. The policy would then continue to payout for between 12 months and 24 months which is again dependent on the provider. All ethical specialists will provide you with the information for you to be able to make sure that cover is suitable for your needs. You do have to check exclusions against your circumstances as all providers will add in some, even if they are just the most frequently found ones.