Income cover can ease the worry of becoming out of work
- 4TH NOVEMBER 2007
Income cover can be taken out to insure against the possibility that sometime in the future you might find yourself out of work and without an income and so be left struggling where to find the money to continue paying your essential outgoings to allow you to carry on living the lifestyle you are accustomed to.
Income cover could begin to give you a tax free income which is up to a certain amount of your own income each month once you have been out of work for a certain period of time, this can be between 31 and 90 days of you being out of work due to suffering an accident, from an illness or unemployment.
The policy would then continue to payout for between 12 months and 24 months depending on the provider in question and is stated in the terms and conditions of the policy. There are certain factors which can mean you wouldn’t be eligible to claim and these include being in part time work, those in self-employment, suffering an ongoing illness or if you are retired. These are some of the most common and there can be others which can be found in the small print of the policy and must be read if you are to make sure a policy is in your best interests.
Income cover has along with the rest of the family of payment protection insurance policies been in the spotlight for all the wrong reasons after it was found that there was wide spread mis-selling of policies. The Financial Services Authority began an investigation into the sector in 2006 which is still ongoing today and handed out fines to several high street names after it was found that consumers weren’t given advice at the time of buying the cover which led to many consumers not being able to claim due to the exclusions.
Currently the sector is in the hands of the Competition Commission who are conducting an in-depth inquiry, the results of which will be revealed in February 2009, however while some changes have been made for the better when it comes to the selling techniques many firms are still behind when it comes to selling the cover and it is still being mis-sold.
Payment protection insurance cover of any kind including income cover is best when taken out with the specialist in payment protection insurance. An ethical specialist such as British Insurance will not only be able to offer the cheapest premiums for the cover but will also make the advice you need to determine the suitability of a product available to the consumer without all the technical jargon associated with the cover.
In British Insurance’s case you can save up to 80% on payment protection and make use of their knowledge when it comes to the product and the free advice that only a specialist is able to give. Income cover can ease the worry of coming out of work and losing your income but you have to understand what the cover is capable of doing and its limitations if it is to work the way the product was designed to work.
