If you have a mortgage linked to the home you are so proud of, you probably will do anything to keep your property in your hands. Well if that is the case, have you considered taking out an income insurance mortgage protection policy?
With a protection policy you can ensure you continue to receive a monthly income even if you were unable to work. You should know that the policy will only pay out in the event of involuntary unemployment so cases of accident, sickness and redundancy are covered.
Once you’ve had a successful claim, your income will be paid tax free for up to 24 months. This will take a huge weight off your mind, especially if you are ill. You can focus all your energy on finding a new job or recovering.
Features and Benefits
While the policy will pay a monthly income, this amount will not replace your entire salaried income, only a percentage is covered. Most lenders have maximum benefit levels attached to income insurance mortgage protection policies
You may be able to tailor the cover to suit your circumstances, for example you can choose to be covered for accident only or a combination of the three involuntary employment situations
How To Choose Your Provider
Deciding on a provider may not be the easy task, the sheer volume of products on the market is enough to make you dizzy. You can start by evaluating the benefits you’ll receive against the cost of premiums.
Many mortgage providers will try to sell the protection product on the back of a mortgage as a single premium.
Simon Burgess, Managing Director of independent provider British Insurance says ‘This practice is unfair to customers as single premium protection policies could add thousands of pounds unto the debt.’
If you were to visit an independent company like British Insurance, you’ll find that you could save up to 40% on income insurance mortgage protection policies.
You can also choose your provider based on the care given before the product is purchased. Does the provider take the time to explain the policy details to you? Are their policies flexible and suited to your needs?
You should take the time to make sure you understand all the terms and conditions so if you do need to make a claim, it will be successful.
Income insurance mortgage protection is a low cost way to protect your income against involuntary unemployment. It can be seen as one of the best ways to remain financially viable even without a regular income. The benefits you receive are much greater than the premiums you pay. You can’t predict the future, but you can prepare for it.
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.