Archive for the ‘Accident Sickness Redundancy Insurance’

It’s difficult to weigh up which poses the biggest risk – are you more likely to be off work through the incapacity brought about by an accident or illness, or do you run the bigger risk of losing your job entirely? All-in-one accident sickness redundancy insurance takes the guesswork out of such decisions and provides reliable and effective protection against all three.

However well you take care of yourself, the actual likelihood of your being incapacitated through an accident or sickness is more or less down to the roll of the dice. Although the probability of it happening to you is difficult to pin down, therefore, insurers Norwich Union nevertheless did some research suggesting that at any one time nearly 2 million of the country’s total work force are unable to
work for more than six months due to accidental injury or ill-health.

The same research revealed that the average worker is nearly twenty times more likely to be incapacitated from working for more than six months than they are to suffer a premature death before retirement age. This highlights an apparent anomaly in the fact that although a large number of people think about and actually arrange life insurance, far fewer consider accident and sickness insurance.

When it comes to the chances of being made redundant, it is similarly difficult to be precise, of course, but the briefest glance at the newspapers will tell you that the odds are increasing daily. It seems widely accepted that the number of unemployed will top 2 million before 2008 is out and that 3 million is a distinct possibility before the end of 2010.

Given a rough shape of the odds, therefore, it is clear to see why accident sickness redundancy insurance is a desirable option. In the event of any such misfortune striking the policy holder, the insurance will pay out each month either a general income replacement or a specific sum to take care of mortgage or other loan replacements. The level of the monthly benefit payments in the event of a claim is determined by the policy holder at the outset and, for income replacement or to cover a loan, can be as much as 50% of his or her normally earned income or £1,000, whichever is less (although the precise limits will vary from insurer to insurer). If the insurance is to be used as a form of mortgage protection, these limits are typically increased up to the lesser sum of 75% of normal earnings or £3,000 (with the exact maximum again varying from policy to policy).

A company specialising in the provision of affordable accident sickness redundancy insurance is British Insurance, whose managing director, Simon Burgess, says: “no one knows, of course, if or when incapacity or unemployment might strike. They can happen to anyone, at any time, and with the economy in the shape it is in at the moment, the most prudent step is to arrange low-cost, but effective and reliable insurance cover against each of these risks”.

If you want to protect yourself and your family from the detrimental effects of job loss, you might want to consider accident sickness redundancy insurance. This product could be the lifeline you need if you were to lose your salaried income. It can help you keep up the payments on your home as well as keep food on your table.

This policy is designed to pay out in the event of three specific involuntary unemployment incidents and I’m sure you could tell by the name of the product that they are accident, sickness (ie incapacity) and redundancy.

The benefits pays a tax free cash payment each month for up to a 12-24 month period, depending on your provider.

If you did not want to be covered for all three events, some providers will allow you to choose between the three and this will be reflected in the price of your premiums. So, you could opt for accident and sickness insurance only; or, unemployment cover only.

Accident sickness redundancy insurance policies can be linked to a mortgage or other debt and is often sold on the back of a mortgage or loan transaction. If your provider tries to sell you the insurance along with your loan or mortgage, you don’t have to take it. In fact it is probably better that you shop around first among the standalone providers as it will often be much cheaper for you if you got your product from an independent provider.

Choosing Your Policy
When choosing your accident sickness redundancy insurance, you should make sure you understand all the exclusions of the policy and inform your provider if your circumstances change.

You don’t want to be in a situation where you need to make a claim but because of an oversight or misunderstanding about policy terms your claim is unsuccessful.

Even if your provider does not give you the information you need, ask as many questions as you like until you are totally comfortable and can make your decision.

We mentioned earlier about getting standalone protection products in order to save on the cost of premiums.

Simon Burgess of ethical provider British Insurance says ‘Some lenders take advantage of customers by selling their protection products as a single premium product at the time of a loan or mortgage transaction. This could add thousands unto the customer debt and is not very ethical.’

At British insurance you will find that you can save up to 80% on loan insurance.

Life is very uncertain, we never know if or when we will fall ill, lose our jobs or suffer an accident. The truth is, it might never happen, but do you want to take that chance? If you did face involuntary unemployment will you be prepared? Do you have savings to dip into or perhaps friend and relatives to help? Can you rely on State handouts?

If you answered ‘no’ to those questions, and you are serious about protecting your income then you might want to purchase some peace of mind with accident sickness redundancy insurance.

Accident sickness redundancy insurance could help to stop you from getting into arrears or debt. There are three different types of protection you can take out depending on what you have to payout each month. Loan cover would allow you to protect the repayments of your loans, mortgage cover protects your mortgage repayments and income payment protection would protect your essential outgoings.

You take a policy by insuring up to so much of your income or your monthly mortgage or loan repayments against the possibility of suffering accident, sickness or redundancy and then claim the sum back you insured if you become a victim to one of these events. You would have to wait for the period of time specified in the policy before claiming and you would then have so many months of protection before the policy would cease.

If you look at the Accident sickness redundancy that standalone payment provider British Insurance offers you would begin to benefit from the protection from the 30th day. British Insurance also backdates the benefit to day one of your unemployment or from you being incapacitated and you would then continue to receive an income for up to 12-24 months. Other providers could payout for up to 12 months but you would have to check the terms of the protection. You should read the terms to also find out when the policy would begin paying as there are some providers that might state a deferment period of up to 90 days.

When looking at the terms and conditions of the policy you should also check to see what exclusions there are in the cover. Providers will add in some and British Insurance includes just the most frequently found exclusions. They also provide you with the information that you need to make sure that you would be able to benefit from a policy.

Accident sickness redundancy insurance can be well worth the small premium that is asked for with British Insurance. You can save as much as 40% on mortgage protection and around 80% on loan payment protection. The income you received from your mortgage policy would go a long way towards ensuring that you would not fall into arrears with the mortgage repayments. If you were to fall into arrears and not be able to catch up on the payments you could lose everything you have built up in your home. Loan cover would ensure you would have some money towards the loan repayments you have to make and this stops you from falling behind and having your credit rating affected. With income payment protection you would have money towards all of your essential outgoings. These can be any bills that come into the home each month and goes towards stopping you from having to struggle to find the money.

Given the present state of the economy, it would seem that anyone in work can count themselves fortunate to have the wherewithal to pay all the household bills. Nevertheless, fate has a way of opening up unexpected pitfalls even for the lucky ones, who can be deprived of their hard-earned monthly income in the event of an accident, or illness, or even a notice of redundancy. To cover those risks, accident sickness redundancy insurance is many by many as an indispensable safeguard.

The risks are certainly real enough. A report in the Telegraph newspaper on 9 October 2008 quoted the Work and Pensions Secretary, James Purnell, as warning that the government had put in place contingency plans to deal with widespread unemployment in Britain, but that no one should count on the government actually to save threatened jobs. As the country slides inevitably towards recession, therefore, the spectre of unemployment seems to have opened up a very real chasm for many workers.

But even if the fickle hand of fate fails to deal a body blow in terms of redundancy, there are still other ways the hard working employee can find his or her regular income disrupted. Having successfully dodged the slings and arrows of an outrageous economic climate, the poor employee might still fall prey to an accident or suffer an illness that keeps him or her off work for a month or more. Indeed, some recent research suggests that as many as one in eight of the population have lost income from work as a result of accidents and illnesses. The average individual shortfall from such periods of absence has been the smarting sum of £5,320 no less.

So the pitfalls are certainly out there and will trap the unwary. The more careful employee, however, will make certain to be adequately insured against such risks with accident sickness redundancy insurance. This is a simple and cheap way of ensuring that even when the miserably unexpected happens, there is still a reasonable replacement income coming in with which to pay the bills.

Policies vary, of course, but typical accident sickness redundancy cover can be arranged to provide a replacement income of up to 50% of the policy holder’s normal, earned income or £1,000 a month, whichever is less. Most policies will pay out such benefits for up to 12 months (the more expensive policies up to 24 months) or until the policy holder is fit enough to resume work, whichever comes sooner.

As Simon Burgess, of British Insurance one of the leading independent providers dealing in this kind of specialist insurance puts it: “whether it’s the result of the deepening recession or good old-fashioned injury or illness, the loss of a regular income can deal a crippling blow to many a household. Now more than ever before, to take the precaution of accident sickness redundancy insurance makes a great deal of sense”.

If you are concerned about the current job market or perhaps the industry in which you work has been facing a slowdown recently, then perhaps it’s time to consider accident sickness redundancy insurance.

As the name implies this policy does not only cover redundancy, but if you suffered an accident or illness that made you too ill to work, you’ll be able to benefit from such a policy

This policy is designed to give you peace of mind amongst the uncertainties in life. If you were to involuntarily lose your job and your income wasn’t protected you could be faced with bad debts, a poor credit profile or even worse your home could be repossessed if you fail to keep up payments.

By protecting your income you will enjoy:

• A monthly tax free income to spend as you like
• Your normal lifestyle
• A stress free recovery

Main Features of The Policy

• Payments are usually made for a maximum of 24 months although this period would differ from provider to provider
• You may be allowed to choose what you are covered for e.g. accident only or all three incidents
• There are maximum benefit levels
• Your entire income will not be replaced, but the benefits paid out are usually quite adequate
• Some providers have a deferment period before you can make a claim

A Word To The Wise

Pretty often, high street lenders will try to sell you their protection products especially if you have a mortgage or loan with them. You don’t have to take them up on their offer though.

You can actually obtain stand alone products from independent providers and the cost of premiums are often much lower than on the high street.

One example is British Insurance. They are an ethical specialist provider of income protection products in the UK. Managing Director Simon Burgess states ‘Our aim is to provide quality protection products with low premiums to consumers, there is no need to pay more than you have to.’

In addition, when choosing your product, make sure to read the terms and conditions so you are comfortable with everything. If the policy has exclusions, you should know what they are and if they affect you.

Summary

Having an accident sickness redundancy insurance policy is becoming more and more necessary today. There is no way to tell what tomorrow will hold, but at least you can prepare for certain eventualities.

Now that you know the benefits of protecting your income, why not purchase your stand alone policy today.

Accident sickness redundancy insurance (or ASU insurance – accident, sickness and unemployment) can be taken out to protect a pre-agreed sum of your loan or mortgage repayments or a portion of your income against the possibility that you might become a victim of one of these events. The sum of money that you chose to protect would be the income that you received back if you needed to make a claim and it would be tax-free.

You can take out accident sickness redundancy insurance in the form of mortgage, loan or income payment protection and all are cheaper when you compare with standalone payment protection specialists. Ethical independent payment protection provider British Insurance would offer you savings of as much as 80% on loan cover and 40% on mortgage payment protection. You would also get cover that comes with few exclusions and the information needed to determine suitability.

Ethical British Insurance offer a policy that comes with no excess as they backdate to day one of your unemployment or from you being incapacitated and allow you to claim from the 30th day and then continue to payout for up to the 12th month if you need to claim that long. If shopping around with other providers you would have to check the small print of the policy to find out the deferment period as with some it could be 90 days. You would also have to find out how long you could benefit as some providers offer protection for 24 months before it expires.

You would also have to check the terms and conditions of any policy you were considering taking out for exclusions as there are always some in any type of cover. Independent payment protection provider offer cover that comes with few exclusions and they provide you with the information you would need to ensure suitability.

Mortgage payment protection insurance would provide you with a sum of money that would go a long way towards allowing you to maintain your mortgage repayments and so keep out of arrears. Being able to service the repayments each month is essential as just a couple of missed payments could mean the lender choosing to start proceedings to take your home. Loan cover taken out as accident sickness redundancy insurance would protect your loan repayments and credit rating which is essential if you want to borrow in the future. Income cover would allow you money towards being able to service all the essential outgoings that come into the home each month. You could use it to maintain your gas and electric bills and ensure you can put food on the table for your family.

Accident sickness redundancy insurance is taken out to insure your monthly repayments against the possibility of becoming a victim of one of these events and losing your income. It is a lot cheaper when bought with a specialist provider rather than having it added in at the time of borrowing. If you were to go with ethical payment protection provider British Insurance you would make savings of as much as 40% on mortgage payment protection and 80% on loan payment protection.

You take out the protection by insuring up to a certain amount of your mortgage or loan repayments or a portion of your own income, which is pre-agreed with the provider when you apply for the protection. This would be the sum of money that would be claimed back if you had to make a claim on the policy.

You would have wait for a period of time before you could put in your claim on your accident sickness redundancy insurance and this would depend on the provider. Some providers such as leading independent broker British Insurance would provide you with an income for up to 12 months after claiming from the 30th day. They would also back pay on the cover to the first day of you becoming unemployed or from being unable to work. If you shop around and check the terms of policies that other providers offer you might find protection that would pay out for up to the 24th month. You also need to check to see when the provider would begin to payout as with some you would have to wait for up to 90 days before being able to make a claim.

You can protect against accident sickness and redundancy in the form of mortgage payment protection would protect the repayments of your mortgage up to the agreed amount you insured. This sum of money would mean that you would not have to find the whole of the mortgage payment and have to worry about falling into mortgage arrears.

Loan payment protection would cover your loan repayment up to the sum insured and would stop your credit rating from being affected and the lender choosing to take court action if you fell behind on the repayments. If the loan was secured on your home you could even end up losing your home to repossession and in all cases you would have to agree to payoff what you owed somehow.

Income payment protection taken out as accident sickness redundancy insurance would provide you with money towards being able to maintain all of the essential outgoings that came into the home. You would not have to worry about making changes to your lifestyle in order to be able to keep financing essential repayments.

You can choose to safeguard against the fact that you could become a victim of redundancy or you might suffer from sickness or accident that would mean you were unable to work. Any reason for a loss of income is a problem as this means you could be left struggling to find the money to continue servicing your outgoings. The solution is accident sickness redundancy insurance, which comes in the forms of loan, mortgage and income payment protection insurance.

You take out the policy by insuring a pre-agreed sum of the monthly mortgage repayments, loan repayments or your income and this would be the sum of money that you would get back when you claimed on the protection policy. This is an excellent way of making sure that you would not fall into debt or mortgage arrears and would allow you to concentrate of getting well or allows you to search around for work.

If you choose to shop around for the accident sickness redundancy insurance cover with an independent provider then you would get cheaper premiums than if you have the protection added into the loan or mortgage. Independent provider British Insurance helps you to save as much as 40% on mortgage cover and 80% on mortgage payment protection.

Mortgage payment protection insurance (MPPI) would give you the income towards being able to continue meeting the demands of your monthly mortgage repayment which of course ensures that you would not be at risk of falling into arrears. Mortgage arrears can lead to eviction from your home. Loan payment protection would protect your credit status and keep you out of court and in the case of a secured loan would keep the property safe from the hands of the lender. Income payment protection would go a long way towards ensuring that you would meet any bills that came into the home each month which saves you from having to struggle to find the money to feed your family.

All forms of accident sickness redundancy insurance would begin to provide an income after a certain period of unemployment or incapacity depending on the terms set out by the provider. If you chose to take out protection with British Insurance you would make a claim on the cover from the 30th day of your unemployment or incapacity and receive an income which would be tax-free for up to 12 months. If shopping around for protection then you would need to read the terms offered by the provider as some providers might allow you protection which would continue paying out for up to 24 months. You would also need to be aware of when the benefit would begin paying as with some providers this could be up to day 90 of your unemployment or your incapacity.

If you lost your income after falling sick or suffering from an accident you would still have to find the money to be able to maintain your repayments. The same would apply to losing your income after being made involuntarily redundant. Payment could be anything from mortgage, loan and utility bills needed to keep the home running smoothly. If you take out accident sickness redundancy insurance then you would not have to worry as you would still receive an income with which to meet your bills.

You can take out accident sickness redundancy insurance  in three ways - mortgage, loan or income payment protection insurance. You would insure a pre-agreed sum of money and then claim this sum back if you became unable to work due to incapacity or if you were made redundant. The tax-free income would be used to keep on top of the outgoings that you took the policy for which would be your day to day living costs and mortgage or loan repayments.

Mortgage insurance would be taken if you have the commitment of a mortgage to make each month. You could secure a portion of your mortgage repayment and then use this to keep yourself from falling into arrears. If you were to fall behind on your mortgage repayments you could end up losing your home to the lender.

Loan repayments can be kept up with by taking loan payment insurance. If you fall behind on loan repayments you would have your credit file affected and you could have to give up possession to bailiffs to recover the money you owe.

If you wanted to be able to maintain all of your outgoings which are considered to be essential you would need to look into income payment protection. You would receive money towards keeping up with all your essential outgoings and use it for any payments that came into the home each month.

All accident, sickness and unemployment polices will be paid out after a period of being unemployed or incapacitated and would run for a certain length of time. If you choose a policy from ethical payment protection specialist British Insurance this would be from day 30 and would be back dated to day one from you being unemployed or of being incapacitated. You would then rely on the protection for up to 12 months if you should need to put in a claim that long. While this is usually long enough to have found work or to have made a recovery you could take out cover with a provider offering to payout for up to 24 months. You would also have to watch out for the small print of any policy you are considering as some might ask that you wait for up to 90 days before you put in a claim.

There are three types of accident sickness redundancy insurance that you could consider taking out to ensure that if you lost your income due to incapacity or unemployment you would not be struggling to pay your outgoings each month. Which type of policy that you choose to take would depend on the outgoings that you have to pay out each month. If you have loan payments to keep up with then loan payment protection could be taken, mortgage cover would help towards the mortgage payments and income payment protection would help towards your outgoings in general.
All policies can be taken independently and if you choose ethical specialist British Insurance you will save up to as much as 80% on loan payment protection and 40% on mortgage payment protection. You would also get some of the cheapest premiums for income payment protection. Policies taken with British Insurance would be based on the amount that you insure and your age. Polices would payout a pre-agreed sum towards helping you meet the payments each month.
British Insurance would supply you with the first payment from your accident sickness redundancy insurance after the 30th day from you being incapacitated or unemployed. The benefit would also be dated back to day one of you being unable to work or from being made redundant and it would then continue for up to 12 months. There are some providers that might offer to payout for up to 24 months and some could ask that you wait to claim for anything up to the 90th day of your unemployment or from being incapacitated.
If you have mortgage payments to meet then you need to ensure that you would have the money even if you lost your income. If you fall into arrears with the payments and cannot make an agreement to pay back what you owe the lender will seek to repossess your home. If the judge rules with the lender then you will be evicted. Mortgage payment protection can go a long way to stopping this from happening. Loan payment protection would help you to avoid court action by the lender and in the case of a secured loan stops repossession. Income cover would help you to pay any bills that came into the home each month and so keep you debt free and your credit rating in good order.
Accident sickness redundancy insurance could make a huge change to your circumstances. Without anything to fall back on you might be left struggling to meet your repayments. This would add more stress onto an already stressful situation. With cover you would be able to concentrate on searching for work and attending interviews or in the case of incapacity it would allow you to make a full recovery.