Payment protection cover can work
- 26TH SEPTEMBER 2007
Payment protection cover can protect you financially in a variety of ways should you become out of work through accident, sickness or unemployment such as redundancy. Payment protection cover is a general term for mortgage payment protection, loan payment protection and income protection insurance. All of these pay out a tax free sum to ensure that you remain financially secure should you lose your income, meaning you can carry on meeting any credit repayments such as a loan, mortgage or credit card debt.
If you take out mortgage payment protection then this will pay out a tax free income each and every month once you have been out of work for 30-90 days and it will continue to pay out for up to 12 months and with some providers for up to 24 months. The income can be used to meet your mortgage and other home related commitments such as house insurance.
Policies have exclusions within them and it is essential that you give these some consideration before you purchase a policy as these mean that you might not be able to make a successful claim.
If you want to protect against a loss of income up to a certain amount each month to ensure that you are able to continue paying your essential outgoings such as food bills and rent, then income protection can provide you with a tax free income each month too. Again exclusions apply under all payment protection cover and you have to read the small print and understand them.
If you have loan or credit card repayments to carry on paying each month then loan payment protection insurance can be taken out to give you peace of mind that you would be able to carry on making your repayments each and every month, but again exclusions apply.
Some of the main exclusions include being retired, self-employed, suffering from a pre-existing medical condition or only working part time. It is essential that you weigh up these facts before you purchase the cover and to shop around for the cover to get the cheapest premiums available.
An independent specialist provider will always be able to offer you some of the cheapest premiums along with the best advice on payment protection cover and standalone provider British Insurance is one of the most ethical in the market place and are considered to be the good guys in the sector.
