Archive for the ‘Income Insurance Mortgage Protection’

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.

It only takes a glance or two at the financial pages of any newspapers these days to wonder just how much trust can be put in the financial services market. Home ownership is taking a beating from the sheer scarcity of mortgages and the few that are available are expensive, to say the least. Pension investments are taking a hammering in the wake of the stock market plunge. Savings in foreign banks appear to be at the mercy of the markets. It’s amazing to find an income insurance mortgage protection plan that does just what it says.

This turn up for the books is a remarkably simple and straight forward insurance policy that provides a replacement income whenever the normal, regular income is disrupted and ensures that the mortgage continues to be paid at a time when it would otherwise be next to impossible to meet such a commitment.

How does it do this? Imagine the all too real scenario in which a mortgage has been secured against the thoroughly reasonable expectation of a steady monthly income. Repayments of the mortgage start to be made and continue to be met perfectly on time and up to date. Then the mortgagee is involved in an accident and suffers injuries which keep him or her off work for a month or so. Or the same mortgagee suffers a niggling illness which similarly keeps him or her off work for the same period. Or – increasingly likely in the current economic climate – the mortgagee finds him or herself made redundant and needs several months in which to find a new job. What happens to those mortgage repayments in the meantime?

The worst that can happen is that the repayments are simply ignored and not made. At the very least, this would lead to a punitive and long-lasting downgrading of the mortgagee’s credit status and will ultimately lead to the mortgage lender’s attempts to recover those losses by repossessing the home itself.

Income insurance mortgage protection , however, will provide a replacement income that ensures maximum cover for the repayment of the mortgage in the event of accident, sickness or unemployment. In any of these events, the insurance will cover a given percentage of the mortgage commitment, which – depending on the particular insurer chosen – can be as much as 75% of the monthly mortgage or £3,000 (whichever is the lower figure). Most policies will also arrange for payments to be made directly to the mortgage lender concerned, so that the chances of defaulting on this most critical of the monthly bills are automatically averted.

Naturally, the most reliable and most affordable income insurance mortgage protection policies will be arranged by the specialists in this particular field of insurance. Amongst the leading such independent specialists, is a company called British Insurance, whose managing director, Simon Burgess, says: “confidence in the reliability and cost-effectiveness of any insurance is critical. Income insurance mortgage protection is certainly no exception and should give the policy holder complete peace of mind in the event of a loss of income following accident, sickness or unemployment”.

Income insurance mortgage protection can help you to avoid mortgage arrears in the event that you lose your income through no fault of your own. A policy can be taken out to protect a portion of your monthly mortgage repayment against accident, sickness and unemployment. The sum that you chose to protect would be pre-agreed at the time of taking out the policy and would be the amount you could claim back if you became a victim to one of the events.

The sum of money would go towards you being able to maintain the repayments and so stop you from falling behind on them. It is essential to keep on top of the repayments as arrears can lead to your mortgage lender starting court proceedings to repossess your home. While many mortgage lenders will allow you to make an agreement with them to catch up on what you owe, if you have not got an income, this could be impossible and court proceedings would be the next step. If the judge were to agree with the lender you would be given a date for eviction and have to leave your home.

Income insurance mortgage protection is cheaper when you choose to take an independent quote. One of the cheapest will come from ethical specialist provider British Insurance. They can help you to make savings of up to 40% on the premiums for mortgage cover and you can choose the type of protection you need. You might want to protect against unemployment and incapacity together but you can also choose just to take out cover for unemployment alone or incapacity alone. This will go towards setting the amount you payout in premiums as will age and the amount you choose to cover, up to the amount defined as the limit by the provider.

When taking out income insurance mortgage protection you have to be aware that there are exclusions which could stop you from claiming. Providers will add in their own exclusions and while British Insurance adds in just the basic few others could include many more. These have to be checked against your circumstances and British Insurance supplies you with the information on their website to do so. Once you have checked eligibility you would then have a back up plan to rely on if you should lose your income. If savings are your form of back up then think again. You would not know how long you would have to turn to them to continue meeting your repayments and they could run out as it could be many months before you recovered enough to get back to work or to find another job. You might also be let down if you relied on the State to provide an income to pay your mortgage repayments. For one thing you would have to be eligible to claim and this means meeting certain criteria. Another even if you were eligible to claim you would only receive help towards the interest part of the repayments. Aat the present time you would have to wait many months before you would see any money.

One of the problems with many insurance products is that, however descriptive the title, it can nevertheless be quite a mouthful. Any confusion in the mind of the consumer can then be further compounded by the fact that there is frequently no consistent use of the product’s title. It may be helpful, therefore, to give a brief definition of income insurance mortgage protection and some of its variant titles.

The full term is completely and perfectly descriptive, but one of the keys to the definition lies in those first two words “income insurance”. Income insurance is something of a shorthand way for describing income payment protection insurance. This is a form of insurance falling within the generic class of products known as payment protection insurance. This recognises the risks posed by an individual suffering financial loss because they are unable to work for several months following an accident or illness or because they have been made involuntarily unemployed. Given its protection against these three specific types of risk, therefore, the insurance is also frequently known as accident, sickness and unemployment insurance.

It is a simple and straight forward concept – if the policy holder is incapacitated from working or becomes unemployed through no fault of his own, the insurance pays out a predetermined monthly benefit, effectively a replacement income, hence the term income insurance. The maximum sum that can be insured in this way is generally 50% of the policy holder’s normal earned income or £1,000, whichever is less (although this ceiling naturally varies from policy to policy).

The second half of our term income insurance mortgage protection, just as self-descriptively refers to mortgage protection. This is a further elaboration of the payment protection insurance concept, recognising that probably the single most important expense that most people will want to cover in the event of accident, sickness or unemployment is the monthly mortgage repayment. Mortgage protection provides just that safeguard.

In this specific instance, mortgage protection recognises that safeguarding the home against the possible threat of repossession (in the event of non-payment of the monthly demand) is the number one priority. It is possible to insure a greater sum for this purpose, therefore, than with a general income protection policy. Mortgage protection limits thus tend to be around 75% of the policy holder’s usual income or £3,000, whichever is the lesser figure.

In sum, therefore, income insurance mortgage protection can go under a variety of different names. Anyone thinking of taking the very prudent step of purchasing such cover but is confused by the exact meaning of the product terms would do well to consult an independent insurance provider, such as British Insurance (one of the market leaders in this field) in order to obtain fully impartial and individually-tailored advice.

You will be forgiven if at first glance you did not understand what an Income insurance mortgage protection policy does, after all there could be two elements to the plan. Once you’ve finished this article however, you’ll be able to explain the plan features to your friends and family.

So let’s get started.

The income insurance mortgage protection policy will offer you a way to ‘earn’ a replacement income if you were to lose your job because of an involuntary act such as an illness, accident or resulting from redundancy. The policy will not cover your full salary but the payments are generally sufficient to maintain your lifestyle.

The next point to note is that the plan will pay out for a maximum of 12 to 24 months depending on the provider your choose

Main Features and Benefits

• There are maximum benefit levels so be careful to choose benefits you know you can live on
• The premiums you pay will depend on the level of benefit you choose
• The income you receive will be 100% tax free so even though it doesn’t cover your whole salary, every penny you receive is free from tax
• Depending on the provider, the plan may be linked to your mortgage so that payment is usually repaid first. Otherwise, you will be able to spend the money as you see fit
• The premiums can be very low if you choose your provider carefully
• Some providers will only allow you to claim once then you’ll have to apply for a new policy

The best thing about owning one of these policies is the peace of mind you and your family could share. If you were the main provider in your family and you suddenly fell ill and had no other income, how will you keep a roof over your head?

Thankfully, by protecting your income, you will be able to concentrate on recovery and not the creditors.

Choosing Your Provider

Many high street lenders will try to sell you protection products on the back of their loans and mortgages, but don’t feel obliged to take them up on their offer as their premiums can be quite high. If you were to visit an independent provider you will find that you could save up to 80% on the premiums.

One such independent provider is British Insurance. Managing Director Simon Burgess states ‘We believe in employing the highest ethical standards and an uncompromising determination to achieve excellence in everything they undertake. As a result, British Insurance specialises in offering income and mortgage protection products at very affordable premiums’.

Summary

So do you think you understand the benefits and features of an income insurance mortgage protection plan? More importantly do you recognise the need for protecting your income? You may wish to explore this option further and begin insuring your income today. You never know what tomorrow holds.

Income insurance mortgage protection can help you to protect your mortgage repayments against the possibility of becoming unemployed or suffering an accident or illness that meant you lose your income. You would be able to insure up to a pre-agreed amount of your monthly mortgage repayment against these events and then claim this sum back, tax-free for up to the period defined by the provider.

The income would mean that you would not be left with a struggle on your hands to continue meeting all the outgoings nor have to make lifestyle changes.

You can take out the protection at the time of taking out your mortgage but you can also choose to take it independently. Even the cost of independent payment protection providers premiums differ so you would have to shop around if you want to ensure that you get the cheapest premiums. One of the very cheapest premiums would come from ethical British Insurance who is a leading specialist in payment protection insurance. They offer income insurance mortgage protection that would come with no excess as the payments are dated back to the first day of you becoming incapacitated or unemployed. You can put in a claim from day 30 and then receive an income each month for up to the 12th month.

If you choose to look with other payment protection providers you would have to check the terms and conditions as some providers could continue paying out for up to 24 months. You would also need to check to find out when you could claim on the protection as providers can ask that you wait for up to 90 days.

All types of income insurance mortgage protection would come with some exclusions. Ethical British Insurance includes the most frequently found but other providers could add in many more. You would have to check these against your circumstances in order to be sure that you would be able to claim. Mortgage protection is essential and can help towards keeping you out of arrears. Mortgage arrears of just a couple of months could be enough for the lender to take you to court and seek repossession of your home if you cannot come to an agreement with them to catch up. Without an income coming in each month you would not be able to do so while also continuing to maintain your regular mortgage instalments and the lender would have no option but to seek you to have evicted. This could all be avoided by paying a small monthly premium for protection, which when taken with British Insurance will cost you up to 40% less than taking cover alongside the mortgage. High street lenders charge way over the odds for a policy so that they can rake in £5 billion in profits each year.

Income insurance mortgage protection insurance would help you to be able to maintain your mortgage repayments if you lost your income through accident, sickness or unemployment. It would provide you with the sum of money that you insured when taking out the cover which was pre-agreed with the provider. This sum of money would be paid back to you as a tax-free income and would go towards ensuring you would not lose your home due to mortgage arrears.

Mortgage arrears are the nightmare of any homeowner taking out a mortgage which is to be paid back over what is often 20 or more years. The possibility that you would have to take some time off work due to suffering accident or illness is very high and in some cases you might be unable to work for some considerable time. With redundancies happening all the time you could also become a victim of unemployment by such as being made redundant. With income insurance mortgage protection behind you there would be no worries about where you would be able to get the majority of money to continue servicing your mortgage repayment.

Just a couple of months of mortgage arrears could mean that the lender would be able to start court proceedings to have you evicted from your home if you cannot agree to catch up on them. Without an income it would be hard to make an agreement so the possibility of repossession would be high.

If you get a quote with independent payment protection specialists then you can make the biggest savings. One of the cheapest quotes would come from ethical specialist payment protection insurance broker British Insurance. They would provide you with a quality policy and all the information needed so you can check for suitability before you take on the cover. There are exclusions which would need checking against your circumstances and providing you had done this you would have a safety net to fall back on to help you with your mortgage repayments.

British Insurance pays out after you have been unemployed or incapacitated for at least a period of 30 consecutive days. They would pay back on the protection to day one of your unemployment or from you being incapacitated and then would continue to supply you with an income that would continue for up to the 12th month if you needed to claim for that long. If you were to look around with other providers for income insurance mortgage protection you could find that you would receive a payment each month for up to 24 months but you would have to check in the terms of the cover before taking it out. You would also need to check to see when you could put in your first claim. Some providers might state that you have to be unemployed or unable to work for a period of no less than 90 days.

Income insurance mortgage protection would be there for you if you lost your income after falling ill, suffering from accident or if you became a victim of unemployment. You could take out the protection by looking online with an independent provider and insuring a pre-agreed amount of your mortgage repayment. The sum you insured would be paid back to you if you had to make a claim and the income is paid back tax-free.

If you chose to take out income insurance mortgage protection with ethical standalone provider British Insurance you would be allowed to make a claim on the cover for up 12 months. The protection would begin to payout after a period of 30 days and British Insurance would backdate the cover to the first day that you became unemployed or suffered from incapacity. When shopping around and comparing premiums you would have to check when other providers would begin to payout on their protection. The terms and conditions of the policy will tell you when the cover would begin as some providers could state you had to be unemployed or unable to work for up to 90 days. You would also find out for how long the cover would last; again some providers can extend this to a maximum of 24 months.

Income insurance mortgage protection would have to be checked for exclusions and these can also be found in the terms and conditions of the protection. All providers put in a certain amount of exclusions and some more than others, British Insurance add in the most common ones. You must check these against your circumstances to be sure of being eligible to claim on the cover. If you stick with an ethical payment protection specialist such as British Insurance the exclusions can be found on their website. Providing you check these before taking out cover you would have a reliable back up plan on which to fall back.

You could of course be relying on being able to claim State benefits to pay you an income. While you might be eligible to claim an income from the State often this falls far short of what you expect and might not give you the money needed to continue meeting the repayments of the mortgage to keep out of arrears.  If this is the case then you could be left struggling and have to make changes to your lifestyle in order to be able to manage. If you have to make severe cutbacks just to maintain your mortgage repayments this could affect the whole family not just you and these problems could have been avoided if you had taken an income insurance mortgage protection policy by paying a premium with a specialist provider.

Income insurance mortgage protection  can help you to keep the roof over your head by stopping you from falling into arrears with the mortgage. If you cannot afford to pay your mortgage then the lender will try to let you make an agreement with them. However without an income this could be impossible and you will then be taken to Court as the lender will want repossession.

Mortgage payment protection insurance (MPPI) can be taken for a small premium with a standalone provider; it would give you a pre-agreed sum of money if you lost your own income as a result of becoming unemployed or suffering an accident or an illness. This money would be used towards your mortgage payment and could stop you from falling into arrears and having your home repossessed.

The premiums for mortgage protection would vary on the provider. You will usually always get protection cheaper if you shop around yourself with a specialist payment protection provider. One of the cheapest quotes will come from provider British Insurance. They can save you up to as much as 40% on your premiums which are based on the amount of your mortgage repayments you choose to cover, your age when you apply for the policy and the level of mortgage protection you want to take.

Depending on your circumstances you could choose to take out income insurance mortgage protection  against accident and sickness only, unemployment alone or you could take out cover for accident, sickness and unemployment together. As the protection is age based British Insurance makes protection affordable for the first time home buyer who has usually stretched their budgets to the maximum.

There is a deferment period before you can put in a claim and the cover would pay out for a certain length of time before it would cease. British Insurance would pay on your policy after you had been unable to work or from being made redundant for 30 days other providers might ask that you do not put in a claim for anything up to the 90th day. Your cover would then continue to provide you with a tax-free income for up to as long as 12 months if you should need to claim that long. Other providers might offer a policy that would payout for up to 24 months.

You would have to check the terms of the income insurance mortgage protection policy that you were considering taking out as there are exclusions. These have to be checked against your circumstances for you to be sure that you can claim on it if and when needed. Once you have done this you will then be able to rely on the cover as a safety net.

Income insurance mortgage protection is a type of payment protection insurance policy which can be taken out so that if redundancy or accident or sickness means you are unable to work you would still have some money coming into the home. Unless you are lucky enough to be entitled to full sick pay then the little money paid by your employer would probably not be enough to keep your head above water especially when you have a mortgage to keep up with.

By taking out insurance for the mortgage repayments you have the peace of mind that you are not going to fall behind into arrears and so risk losing your home to the lender. The majority of lenders are usually willing to give you a little lee-way by helping you to make an agreement with them to catch up on missed payments. However this is all well and good if you do have money coming in. If you have not then how would you manage to make an agreement? A failure to do so would mean they would have no choice but to take you to court and seek repossession of your home and have you evicted. While this is of course not a nice thought it does happen to thousands of people each year and this is why you need to give some consideration to taking out protection.

One of the easiest ways to take out what can be very valuable income insurance mortgage protection is with an independent payment protection provider. British Insurance is one of the most ethical who provides plenty of essential advice and information so those considering a policy can decide if it is suitable. You can read all about the protection on their website and then if you would be eligible for the cover you can then apply online. Cover for your mortgage with British Insurance begins to payout your income which would be tax-free after you had been unemployed or incapacitated for just 30 days. Other providers could ask 90 days of waiting to claim. The policy is back paid to day of you becoming unemployed or of suffering accident or illness and then continues paying for a period of 12 months if you should need that long. There are other providers that might offer protection that runs for up to 24 months.

Income insurance mortgage protection is a far more reliable plan for a replacement income than State benefits. When applying for State benefits you would not have to have savings over a certain amount, or have a partner living with you who is in full time work. You would also only get mortgage help for the interest part of the mortgage and then only for up to a certain amount. Worse still you could have to wait for several months before you would see any money and during this time if you cannot pay your mortgage then you would fall into arrears.