pom's Blog

Taking out payment insurance is a great way for you to be sure that you would have the money needed to be able to maintain your essential payments. You would be able to keep up with loan and mortgage outgoings along with general bills that keep the home running along smoothly. All in all they are a safety net which can be used if you cannot work due to accident or sickness or if you should become unemployed.

Keeping up with your outgoings is imperative and especially when the mortgage comes around. Not having the money in the bank to be able to pay your mortgage leaves you being faced with repossession. If the lender takes you to court for none payment of your mortgage and you have arrears which you cannot catch up on, then the judge could evict you. However if you have a policy called mortgage payment protection then this would allow you to keep paying your mortgage if you needed something to fall back on. You can find a specialist provider and could make savings in the region of 40%. You can also choose what you want to protect. You could take out a policy for all three possibilities of accident, sickness and unemployment. However you could only want accident and sickness protection or just unemployment protection.

Loan and credit card outgoings would have to be maintained too if you wanted to keep out of debt. A loan payment protection policy would allow you to do this and when taken with a standalone specialist you are able to get it for around 80% cheaper than with the high street lenders. You would not have to worry about County Court Judgements or of having your credit rating destroyed along with your chances of obtaining credit in the future.

To be able to keep up with all of your outgoings including loan or mortgage payments then income payment protection can be a very worthwhile consideration. Providers allow you to insure up to so much and then will give you this back each month by way of your payment insurance if you are out of work up to the period stated in the terms and conditions. This is also used to maintain bills such as heating, lighting and allows you to provide food for the family and other necessities.

When looking into taking out payment insurance you should with an independent provider as this is the best way to make the most savings. You need to find out from what day you could start to claim on the cover as this differs between providers and for how long the policy pays out. Some providers would pay from day 30 and others could pay from the 90th day. Providers might offer a 12 or 24 month policy so this also has to be checked in the terms before taking on the protection. You should also check to see if the policy you are considering would be backdated. Some providers will backdate the benefit to the very first day of you being unemployed or of you being incapacitated.

Losing your income suddenly if you found yourself unable to work after falling sick or if you had an accident that meant you had to take time from work would be devastating. You could be left with a serious struggle on your hands to carry on paying your essential outgoings. One of your biggest worries of course would be how you would be able to continue meeting your mortgage, and income insurance would provide you with a replacement income to stop that worry. However it would also allow you to pay all your other essential outgoings and save you from having to juggle around your bills each month with the little bit of money you do have.

Knowing that you had the money in the bank each month for the direct debit for your mortgage would give great peace of mind. Falling into arrears with your mortgage is a nightmare that every homeowner faces. Just a couple of missed repayments would mean that you would have to catch up on the arrears while at the same time continuing to pay the mortgage. If you cannot make amends then the lender would have no option but to seek repossession of your home. Of course this is the worst case scenario but it does and has happened to thousands of homeowners in the past. Income protection would be able to put this worry far from your mind and would allow you to concentrate on getting better or would allow you to find work.

There are many more reasons why taking income protection is essential. You would be able to continue covering any loan or credit card repayments you have each month so you would not find yourself getting into debt. It can be so much harder to get out of debt and it can spiral out of control, again your protection policy would be able to stop worries such as these.

The cost of income insurance will vary depending on the provider so it is essential to shop around and compare the cost of a policy. Independent providers will supply you with a quote based on your age when applying and the amount of your income that you wish to cover. You would then pay the premium each month and if you were to find yourself unemployed or unable to work you would then be able to claim.

You need to check the terms and conditions of the policy before taking it out as these too differ. Some providers will offer income protection that would begin to provide you with your replacement income after only 30 days. Other providers might ask that you sustain from putting in your claim until as much as the 90th day. Income insurance would supply you with the benefit for so long before expiring; usually you will receive an income each month for a period of either 12 or 24 months. This is usually more than enough time for you to be able to make a recovery and get back to work or to attend interviews and find work.