Income protection cover would provide you with a tax free sum of money which would give you peace of mind. It would allow you to continue meeting your essential outgoings which means you would not have to worry about your bills. This income would continue for between 12 and 24 months which is generally enough time to get back to work. You do have to wait for a period of time before a policy would begin; this is usually between 30 and 90 days of being unable to work, though with policies your claim is back dated to the first day you are unable to work..

While income protection can be a lifeline you do have to be aware that there are exclusions. There are some that are universal to all payment protection policies and exclusions which can be added by the provider. Reading the terms and conditions thoroughly is essential because they can vary greatly among the insurers.

Along with the terms and conditions varying the cost of the cover can also vary. Premiums can differ a lot and the cheapest can usually be found with an independent provider. Taking out income cover online with a specialist provider is easy. All they need to give you a quote is your age at the time of applying and the amount of your monthly income that you wish to cover.

With the tax free income you would receive each month you would be able to continue meeting your essential outgoings which could include your mortgage and loan repayments and any other essential outgoings. However if you suffer an ongoing medical condition, if you are of retirement age, are self-employed or only work part time then a policy probably would not be suitable.

Income protection along with the rest of the family of protection policies are known to be hard to understand. They are often filled with technical jargon which only confuses the consumer more. However by getting a quote from a standalone provider you can be sure that they will make available all the information needed to determine suitability.

Problems began for the payment protection sector - of which income protection is a part - in 2005. A super complaint was made by the Citizens Advice to the Office of Fair Trading regarding high priced policies and a lack of information regarding the cover being sold. Fines were handed out and the Financial Services Authority set out guidelines for selling.

March 2008 will see the introduction of comparison tables which should make all products more transparent. The tables will highlight the exclusions, make the consumer aware how much a policy will cost and allow them to choose the right cover for their needs.

Income protection can work in the way it was designed to but you do have to read the terms and conditions to ensure that you have the right level of cover and at a price that suits your budget.