So what is income payment protection insurance?

Income protection or income payment protection insurance is designed to cover your income in the event of accident, sickness or unemployment. These policies are also known as ASU policies from the elements they cover - accident, sickness, unemployment.

The news is currently full each day of companies announcing massive redundancies. Many thousands of people are losing their jobs and some will find it difficult to source alternative employment. If that happened to you how would you cope? You monthly bills and expenses still need to be paid.

Income protection insurance could help alleviate this situation by providing a regular monthly income in the event of redundancy. These types of policies only cover involuntary redundancy and you must not have known before you applied for the insurance policy otherwise the cover will be voided.

Income payment protection insurance is available from a variety of places but it is wise to check out the policy terms and conditions before applying. Different companies will offer different policies. Some of the better plans will offer aged based premiums and back to day one cover.

You can obtain income protection insurance for upto £1500 per month and in the event of a claim payments will be made to you for up to 12 months.