You could be eligible for payment protection if you have mortgage, credit card, or loan repayments each month. If you work full-time and want to protect your income, then you could benefit from payment protection.
A term used to describe a group of insurance policies that includes payment protection. These include income protection, loan protection, and mortgage protection. They all provide income protection, but they each do different things.
All policies provide financial security and a tax-free income. Insurance can cover the cost of medical expenses if the policyholder is unable to work because of illness or injury. You can also get protection against involuntary redundancy and unemployment. You would normally have to wait between 30 and 90 days after being declared unfit for employment or unemployed before you can claim. Depending on the terms and conditions, a policy would continue to pay for 12-24 months. These conditions are essential and should be read. These exclusions can also be applied to the policy.
The policyholder could receive the income each month as mortgage payment protection to help them continue paying their mortgage payments. You would have peace of mind knowing that your home would be protected in the event of an unexpected death or disability.
Some homeowners depend on their savings to make ends meet. However, if they were unemployed or unable to work for several months, these savings would run out. Others believe the State will provide them with financial assistance. You can get help from the State, but you have to be receiving income support and must not have more than a certain amount of savings.
You would also be ineligible if your partner lives in your home and is employed full-time. If you applied for the benefit before October 1995, you will have to wait up to nine months to receive it. Any benefit will only cover the interest portion of the mortgage up to PS100,000.
The loan payment protection program would generate an income to pay your monthly credit card or loan repayments. You would have peace of mind knowing that you wouldn’t get into debt or be subject to bailiffs taking your property. This would also allow you to keep your credit rating. It can take many years to fix bad credit and you may have difficulty getting credit.
The policyholder would receive income cover that would replace their current income up to a specified amount. The income can then be used to keep their lifestyle the same and not make drastic changes. You can focus on your recovery or find a job that you love without worrying about money.
Each month, all three types of payment security coverage would provide protection for a monthly premium. Independent providers will offer the best quotes. A policy that is taken out alongside borrowing could cost hundreds of pounds more. Payment protection costs will depend on the amount you want to pay each month and your age at the time of application. It also depends on what level of protection you select for mortgage protection. You can choose to have insurance that protects against only unemployment, sickness or accident.