Consumers cannot afford not to purchase an income protection plan, an expert has claimed.

"By purchasing income protection you can protect yourself from losing your income if you ever become injured, sick or disabled. It can even protect you if you become unemployed," explained personal finance publisher Ken Charmley.

Pointing out that getting income protection involves simply picking up the phone or going online, Mr Charmley emphasised the peace of mind offered by cover that will protect you and your family "should the unfortunate happen".

"A private income protection plan is designed to replace your income if you happen to become unable to work," commented the insurance specialist, who has personal experience of "the unfortunate" occurring.

"Five years ago I had it all: a new house that was newly mortgaged, a new car that was newly financed, a fantastic job and my wife and children were all healthy and happy," said Mr Charmley.

"Then I got sick and for the first time in my life I briefly believed that I had significant financial issues to worry about.

"Since I was the breadwinner of the family my thoughts reeled; who was going to pay the monthly bills, the mortgage, the car payment and the credit card bills?"

In this instance, the finance expert had an income protection plan that he had forgotten about because, he admitted, he never had to rely on it before: "I was certainly glad that I had it in place and could rely on it in our time of need.

"I could use the income from my income protection plan to take care of all of our financial needs until I got back on my feet: what a relief."

An income protection policy pays a tax-free income once a month until an individual has recovered, doing so up until retirement if necessary.

"You can also designate your payout to either be level or rise with inflation," confirmed Ken Charmley.

Bosses sometimes provide this type of coverage as part of an employment package, with the maximum amount allowed standing generally at half an individual's gross income.

Because the cover is paid tax-free, a similar amount of take-home pay can be expected. Mr Charmley is one of many financial advisers to recommend income protection insurance "for everyone".

"Becoming sick or having a disabling accident is not a matter of if; it is a matter of when. No one walks around with a guarantee to remain completely healthy and no one has a crystal ball that will predict when an accident will occur," he pointed out.

"Be prepared and keep your family financially protected. I'm sure happy I did."

Health insurance specialist BUPA has pointed out that there will be more need for income protection insurance as a result of new welfare reform rules coming into effect next year.

State benefits are expected to become lower and more difficult to obtain, with some new claimants no longer qualifying.

Meanwhile other individuals may find benefits lower than they are for existing claimants in similar circumstances.

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