Payment cover can help you during unemployment
- 25TH SEPTEMBER 2007
If you are in full time work and should find yourself out of work through accident, sickness or unemployment brought about redundancy then, unless you have savings to fall back on, the only thing that might save you financially is if you have payment cover.
Payment cover is a term used for insurance which is taken out to safeguard against the fact that you might come out of work due to accident, long term sickness or unemployment. Payment cover comprises of mortgage payment protection insurance, income protection and loan payment protection insurance and all basically do the same which is to give you an income to replace the one you lost so that you can continue to make your repayments each month.
All policies will begin to pay out after a set time (usually between 30-90 days after being out of work) and will give you a tax free monthly income each and every month for up to 12 months and with some providers for up to 24 months. All polices can be taken out to insure against coming out of work due to accident and sickness only, unemployment only or to cover against accident, sickness and unemployment together.
Mortgage payment cover will give you an income with which to meet your monthly mortgage repayments which means that you aren’t at risk of losing the roof over your. Loan payment protection will safeguard your monthly loan repayments; and income protection cover will give you an income to ensure that you can continue to make your essential outgoings.
The best way to buy payment cover is to purchase it independently from a specialist payment protection provider. One such provider is British Insurance; they are one of the most ethical providers who can save you up to 80% on loan payment protection and around 40% on mortgage payment protection. You do however have to make sure that you understand the exclusions and key facts before buying a policy but British Insurance gives you this information in plain English.
