Income insurance mortgage payment protection is a useful policy to have in an uncertain economy. Furthermore it is a good policy if you are concerned about keeping up your mortgage payments if you are unable to work.
The policy will pay a monthly benefit if you were unable to work for an involuntary reason such as accident, redundancy or sickness. The benefit will be paid for a maximum of 12-24 months or until you return to work, if the return to work is sooner.
Features and Benefits Of The Policy
All the income is paid free of tax, so every bit of the money is yours to use as you like. The policy is usually linked to your mortgage so when this tax fee income is paid, your mortgage payment will be the first priority. If there is a balance, it can be used for other expenses.
You should know that there are maximum benefit levels with this protection policy, so it is important to choose a level that will be sufficient to meet your needs. The benefit you receive is calculated based as a percentage of your gross salaried income
Once you know where to shop, you’ll find that the premiums for these plans can be very affordable. In addition you should check with your provider to find out if you can make more than one claim per policy. Many providers restrict the number of claims.
Selecting Your Provider
Very often the main differentiator between providers is the cost of premiums. Usually most income insurance mortgage payment protection plans are quite similar when it comes to the benefits.
If you choose your product from a high street provider, the premiums will be much higher than that of an independent company.
One independent company - British Insurance – offers a savings of up to 40% on premiums for mortgage protection policies. When considering your options, you might want to see how much a stand alone policy can save you.
Whichever option you choose, be sure to read your terms and conditions to know exactly what the provider is offering. The policy should suit your circumstance well. This way if you ever have to make a claim your chances of a successful outcome will be very good.
Conclusion
You can’t really put a price on the peace of mind that comes with an income insurance mortgage payment protection policy. Not only will it keep the money coming in, but you can use that money to keep a roof over your head. With a policy in place, you won’t have to fear financial ruin if you lost your salaried income.
For many years I have been a staunch campaigner against the major names in finance who, I believe, rip-off their customers by selling over priced, often unsuitable payment protection insurance (PPI) cover.