Payment insurance can work if you choose it independently
- 25TH SEPTEMBER 2007
Payment insurance is taken out to make sure that if you lose your income you would still be able to meet your essential outgoings such as mortgage payments and loan and credit card repayments. Payment insurance protection is an umbrella term for a set of payment protection insurance policies that can be taken out to give you an income when you lose yours due to suffering from an accident or long term sickness and when your employer no longer pays for you to be off sick, or through unforeseen unemployment.
Payment insurance comprises of mortgage payment protection insurance, loan payment protection insurance and income payment protection insurance.
When bought correctly a payment insurance policy will begin to pay out a monthly tax free income after you have been out of work for 30-90 days and, with good policies, will be backdated to day one. The payment insurance policy will then continue to pay out for up to 12 months and with some insurers, for up to two years.
You do however have to make sure that a payment insurance policy would pay out in your circumstances and this is where you have to read the small print in a policy.
Common exclusions within most payment insurance policies include if you are self employed, retired, only work part time or if you suffer from a pre-existing medical condition. There are many others and you do have to understand them before buying your cover. Buying from a standalone provider as opposed to the high street lender is the best way to purchase payment insurance, not only when it comes to saving on the premiums but also for the essential facts that an ethical provider will give you.
Payment insurance protection can work but you have to buy it independently from an ethical payment protection provider who specialises in payment protection, one such company is British insurance. British Insurance makes the key facts easy to understand along with explaining the exclusions which help you to decide if a policy is suitable for your needs.
