Income Protection Insurance - Good idea? What do the wise people of UKPF think about income protection insurance? I have quotes for around £13 a month that will cover my essential expenses in the event of sickness, accident or unemployment. With all the PPI stuff that's been happening, I'm wondering: 

1. Do policies ever actually pay out?
* Are there any particular 'small print gremlins' I should be on the look out for?
* What do the more expensive providers do that the really cheap ones don't, aside from more money every month?

My job is relatively secure as an engineer in a large engineering company, but I don't really have an emergency fund at the moment so I'm thinking for £150 a year I could cover myself against the worst-case scenarios.

Any advice or experience would be gratefully received.