Income payment protection insurance is your sure way to protect your monthly earnings. Be it Accident, Sickness or Unemployment situation, you are well protected and prepared to meet your immediate financial requirement. Get an income protection insurance to take benefits of the policy in times of a financial calamity. You need not feel financially handicapped when you are out of employment due to your sickness, accident, unemployment or redundancy. It covers you if you are made redundant due to economic down turn or low performance.

However, this will not cover your monthly salary if you are laid off due to misconduct or have voluntarily resigned from work. Hence, make sure you have understood the terms and condition of the policy before you sign up for one. This will ease any tension in times of financial calamity. Avoid any mistakes in understanding the policy so that you can make a rightful claim of your monthly compensation when you are out of employment for sickness, accident or unemployment. It is also to be noted that you must be in employment in your current organisation for more than six months. No contract employee or a self employed person is covered under this scheme.

No other insurance will cover your monthly earnings in case you are made redundant. An insurance company will provide you a portion of your monthly earnings, roughly around 60 to 75% of your salary will be paid out to you. You are free to make use of your income in any way. Pay off your medical expenses, grocery bills, mortgage payments etc. If you have taken a right policy on time, you can relax even in times of redundancy. Normally, insurance policies last for between One and 5 years, after which you can reassess your need to re-insure. Premiums, the cost of which differs from insurance company to insurance company, are paid monthly.

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