Also known as short term income protection, this can be
used to safeguard your rent payments, utility and council tax bills
or even your monthly food costs
This Mortgage insurance is designed to cover your mortgage and
up to 25% of related expenses such as your life insurance or home
insurance only. The maximum monthly benefit is £2000
Protect your loan repayments if you become unemployed,
suffer an accident or sickness, are hospitalised, die or are
diagnosed with a Terminal Illness or become a carer for a partner
Family Income Benefit will pay your family monthly tax-free
payments should you die or be diagnosed as terminally ill.
We provide insurance for holiday and second homes in the UK,
Spain, France, Portugal, Italy, Greece, Southern Cyprus, Bulgaria
and the Republic of Ireland.
As a landlord you face unique risks. We offer good value,
flexible insurance which covers properties let to professionals,
students and DSS and up to 20% no claims discount
Our Unoccupied Property Insurance is suitable for properties
which may be left vacant for 30 days or more. Instant cover is
available online or over the phone
British Insurance is one of the UK's leading independent
Protection Insurance providers. This cover is also known as
accident, sickness and unemployment (ASU) insurance or redundancy
Because we're part of Towergate Insurance - Europe's largest
independent intermediary - we're able to extend our product range
and include policies that have been traditionally difficult to
source from online providers.
At British Insurance we are passionate about offering good value
insurance in a simple way. We are online only, keeping the costs
We’ve won numerous awards and received many endorsements, but
don’t just take our word for it, check out what others have to say
about us in the awards and press section.
Click here to read more information
about the claims ratio of our insurers.
What is Protection Insurance (PPI)?
PPI, also known as Unemployment Insurance or Accident, Sickness
and Unemployment (ASU) cover, is an insurance policy which pays out
if you lose your income - due to redundancy or an inability to work
because of an accident or sickness - and replaces it with tax-free
monthly cash payments for up to 12 months.
This cover has traditionally been sold by credit providers
alongside mortgage, loan or credit-card products. However, the
Competition Commission intends to ban lenders from selling PPI at
the point you take out your borrowing. This gives you the
opportunity to shop around for cheaper payment protection cover
from intermediaries and online protection providers such as British
Insurance via the internet, to ensure you get the best deal you
Many people aren't aware that payment protection insurance isn't
restricted to mortgage payment protection, covering just your
finance commitments; income payment protection insurance can also
be used to safeguard your rent payments, utility and council tax
bills or even your monthly food costs.
How does it work?
Providers generally price cover per £100 of monthly benefit -
allowing you to clearly see what you're paying each month and know
what the return will be should you need to claim. Simply work out
how much you need and the provider will calculate the premium. If
the provider doesn't give you a monthly figure, either ask for one,
or find someone that does.
Payment Protection Policies offer a choice of waiting periods
(the length of time you've chosen to wait until money starts being
paid directly to your mortgage provider or into your bank account)
- these range from ‘back to day one' to 180 days. The longer the
waiting period, the lower the monthly premium.
Who is the cover for?
Anyone in employment who runs a home. Whether you're buying your
property, renting or in a shared ownership agreement, the financial
consequences of a lost salary are equally severe.
I'm wary of buying protection insurance due to stories
I've heard in the media
We understand this and it's one of the main reasons we've put
together this guide to try and make income and mortgage protection
cover clear to people, and so that they don't pay for something
that's not suitable.
In the past there have been instances where high street finance
providers have sold Payment Protection without explaining what is
and isn't covered. Also the PPI cost used to be added to your loan
(known as single premium PPI) and you were charged interest on your
premiums which made it an expensive form of insurance.
Now you just pay your premium on a monthly basis totally
separate from your borrowing and are free to cancel at any time.
It's important that people don't disregard payment insurance as it
can really help you manage your finances if you find yourself
unable to work.
What isn't covered?
We are not saying that mortgage and income protection is right
for everyone and there are some important conditions you should be
aware of before deciding to take out this cover.
- If you're a contract worker or self-employed certain conditions
for redundancy cover apply so check the policy exclusion before you
- You will be unable to claim for unemployment until your policy
has been up and running for an initial period - typically 120
- You will not be able to make a claim for a medical condition
that you have suffered from prior to taking out your PPI policy
- You will be unable to claim for unemployment or sickness cover
until you have been off work for a minimum period - this will vary
between providers but is usually from 30 days. It also depends on
the waiting period you have chosen.
- Claims resulting from back-ache and stress (the two most common
reasons for workplace absence) will usually only be paid if
radiological evidence or a psychiatrist's diagnosis is received and
that it's not a pre-existing condition.
- Maximum age for cover is usually 65 years.
- Maximum monthly payout is usually restricted, either to a
percentage of your monthly income or a maximum monthly limit.
- You have a 30 day cooling off period when you take out your PPI
policy and have the right to cancel and receive a full refund
during this time.
Why it's important to you?
PPI is an effective way stop bills spiralling out of control at
a time when money is tight. It can prevent you having to use up
your savings or getting into debt, so why leave things to
Whilst state support is available, for many, it is unlikely to
be sufficient. The weekly Jobseeker's Allowance of £65.45 is barely
enough to cover a food bill and it's been found that less than 2%
of households qualify for the Government's £40 a week Income
Support for Mortgage Interest scheme (recipients are means-tested).
PPI on the other hand cover allows you to take control of your
When should I buy PPI?
Give it some careful thought now, just think how you'd manage to
meet your monthly repayments if you were unable to work - don't
leave it until it's too late. For example, if your company
announces a programme of job losses, restructures or mergers with
another firm within four months of your policy start date you won't
be eligible to claim. In other words, don't wait for your
employment situation to change before you think about buying a
What happens if I need to make a claim?
You will find a contact number on your policy and advisers will
explain the next steps. If you're making an unemployment claim,
you'll need to register with Jobcentre Plus - the date you register
is the date your claim starts. For accident or sickness claims, a
doctor will need to provide details, and again, the start of the
claim will be the date the doctor has certified you're unfit for
This guide is provided by British Insurance and Moneynet and is
intended to provide a high level overview. When buying payment
protection insurance, always read the insurer documentation to
ensure the cover is appropriate for your needs.