If you fall sick and find yourself unable to work for any period of time then you would struggle financially if you do not get full sick pay. The same would apply if you are unable to work after being involved in an accident. You might also lose your job at anytime through unemployment caused by such as being made redundant. While you cannot change this fact and what will be, will be, you can at least insurance against these possibilities by taking out accident sickness redundancy insurance.
If you have a policy behind you at least you would not have to worry about where you would get the income to be able to pay your outgoings each month. The policy would begin to supply you with a sum of money which you decide when taking out the policy. This sum is paid to you tax free and can be used to keep on top of such as the mortgage, loan repayments or your essential outgoings. Usually you would have to wait around 30 to 90 days before you are able to put in a claim and then once the cover has started you would continue to receive an income for either 12 or 24 monthly payments.
You are able to take out accident sickness redundancy insurance as mortgage payment protection, loan payment protection and income payment protection. All policies are cheaper if you choose to take out the protection with a standalone payment protection specialist. Loan and mortgage cover are sometimes sold alongside the borrowing, however sometimes the cost of the whole cover is added onto the borrowing and then interest factored in on top of this. This can add a costly sum onto the borrowing and you can get cover far cheaper.
A standalone specialist will offer premiums which are based on age and the amount you wish to protect each month of your outgoings. All providers will set a limit on the amount you wish to cover and this is what you would receive back as a tax free income. An age based policy is excellent for the younger generation as they can make huge savings.
Mortgage cover can be taken out as accident sickness redundancy insurance or you can choose to protect accident and sickness only or unemployment only. By tailoring your policy you can get just the cover you need and of course keep the cost of the insurance down. It is essential to keep up with your mortgage and a policy is a far more viable option than relying on being able to claim benefits from the State or relying on savings. You would be assured of not falling behind into arrears with the mortgage and losing your home to the lender.
Loan cover would do the same for your loan repayments and income payment protection would cover all of your outgoings when taken out as accident sickness redundancy insurance. You would have to check the terms of the policy to ensure that you would be eligible to claim as all cover comes with some exclusions. However once you have done this you would have a safety net to fall back onto if you were to lose your income.
Simon Burgess is Managing Director of the award-winning British Insurance (http://www.britishinsurance.com), a specialist provider of low cost income payment protection insurance (PPI), mortgage payment protection insurance (MPPI) and loan payment protection insurance.
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