Archive for the ‘Income Payment Protection’

Facing a long stay in hospital or a long period at home recovering due to an injury are both stressful enough circumstances without worrying how things like bills and other commitments might be paid. But sadly, creditors often still expect that you will repay debts even when you fall on a difficult set of circumstances. For this reason some people look to cover themselves with a safety net such as income payment protection, a form of financial insurance.

Different levels of cover are available but in general this sort of policy will give someone a lump sum tax-free for each month they are stripped of their income. Policies normally cover illness, injury following an accident, or involuntary redundancy.

The cash can be used for things like credit card bills, unsecured and secured loans, and other regular outgoings. Many policies insure around 50 per cent of someone’s regular income, meaning each payment following a successful claim will be for half of what they would normally get from their job. Say someone takes home £1,400 a month, their insurer might provide them with £700 per month following a successful claim.

The idea it is to keep someone ticking over until they are able to get back into work. It can be used for life’s essentials and could potentially protect someone’s credit rating and keep debt collection agencies at arms length. To qualify most companies ask that a policyholder is at least 18 years of age, is a full UK resident, and has held down a full-time job for at least six months.

Payments will normally continue for around 12 to 24 months or until someone is back at work, which ever arrives sooner. Income payment protection should not be confused with income protection, which is a longer policy covering someone’s income and replacing it for far longer than the 12 to 24 month periods often available with income payment protection.

A person can normally expect the first payment to arrive at around a month after their successful claim, although many firms will backdate payments until the first day someone was without their income. A lot of companies are also quite flexible about the type of cover they offer. For example, some people may be more worried about redundancy than they are about anything else. This means that some firms offer policies which merely pay out if someone is told their services are no longer required by their employer.

Income payment protection, while available from lenders themselves and high street banks and insurance firms, can also be bought from more independent companies like payment protection specialists British Insurance. The company’s managing director, Simon Burgess said: “Peace of mind can be a bargain at any price, but our policies are highly competitive, and in many cases cheaper than big-name lenders.”

If you should lose your own income through unemployment, sickness or accident you could struggle to continue servicing your essential outgoings each month. As it could take several months to make a recovery or find another job this could put more stress onto an already stressful situation. However with income payment protection you would have the security of an income.

The income you would receive from the protection would be the sum of money that you had chosen to insure of your own income and which would be pre-agreed with the provider. This sum of money would be paid back to you after the deferment period and for the duration set out by the provider and this differs with providers. If your provider was standalone ethical British Insurance you would be eligible to make a claim after day 30 or being redundant or from being unable to work. British Insurance also dates back cover to the first day so that there is no excess. You would be able to choose to protect your essential outgoings for either 12 or 24 months depending on the level of protection you require. If you should look with other providers you would need to read the small print as some providers ask that you wait to make a claim until the 90th day.

Income payment protection would provide you with the peace of mind of an income so that you are able to concentrate on making a recovery or finding work. There are many ways that the income from your insurance policy would come in very useful. You could use it to pay for grocery bills to keep your family happy, pay the utility bills or for any bills that come into the home each month.

With a policy behind you, you would not have to juggle around with the bills that come into the home each month and risk getting into debt. Lifestyle changes that could have a drastic affect on the whole of the family would not have to be made. This would leave you free to search around for another position and attend interviews and it would also provide you with the security needed to concentrate on making a recovery and getting back to work.

Providing you had checked the exclusions in income payment protection and ensured you had checked them against your lifestyle you would then have something which could be relied upon. British Insurance supply you with the information you need to do this and then include just a few exclusions in their insurance but other providers could add in many more. A policy would be more reliable than risking savings lasting for the term you were unemployed or unable to work as you would not know how long it might take to find work or to recover and your savings could deplete well before then.

If you stop to consider what you have to pay each month in essential outgoings you might find that you have quite a substantial amount of commitments. While working you might have no problem maintaining the payments of these outgoings, however if you were to lose your income where would you find the money? Income payment protection is one way of ensuring you would have an income if you were to become unemployed or incapacitated.

You take out protection by insuring a portion of your income which the provider would pre-agree with and if you fall victim to one of the events you would claim on the policy and receive the income back each month that you had insured. The sum of money would be paid back tax free and would go a long way towards ensuring that you would be able to maintain any outgoings. The money could be used towards any essential outgoings that came into the home each month. You might for example use it to service your utility bills and food bills; in fact you can use it for anything you wish. With protection behind you there would be no struggle to find money for bills and you would not have to make drastic changes to your lifestyle nor juggle bills around and hope you can catch up on the in the future.

Income payment protection insurance would begin to provide a monthly income after the deferment period specified by the provider and would then continue for so long. If you were to take protection with standalone payment protection provider British Insurance this would be from day 30 and they backdate to day one of you being made unemployed or from being unable to work. You would then have a 12-24 month period in which to find work or to concentrate on making a recovery. Shopping and comparing with other providers could mean you have to wait for up to 90 days before claiming but you would have to check out the terms and conditions.

When checking the small print of the policy you should also check for exclusions as providers always add in some. Ethical leading payment protection specialist British Insurance add in just the basic few, however other providers could add in many more. It is essential to check these against your lifestyle as they can stop you from being eligible to make a claim on the insurance. British Insurance supplies the information you need on their website. Income payment protection insurance, providing you have checked for eligibility, can be a great safety net to rely on if you were to lose your income and is far better than risking falling back onto any savings you have. You would not know how long savings might have to be used as it could take many months to recover of to find work.

Income payment protection could be a safety net to rely on if you should lose your own income as a result of becoming sick, being involved in an accident or becoming unemployed. You can protect up to a pre-defined sum of your income which the provider would pre-agree with and then claim that sum back if you should to become a victim.

The income you received back could be used towards any of your outgoings and these can be anything. You could maintain your utility bills or provide your family with food. There would be no worry about where you would find the money needed to continue meeting all the outgoings that came into the home. You would also not have to juggle the bills around or put some off with the hope that you would be able to catch up on them in the future.

Income payment protection does not need to be expensive if you shop around for the premiums. If you take a quote from standalone specialist payment protection provider British Insurance you will get one of the cheapest quotes. With British Insurance you will also get cover that comes with just a few exclusions and they provide you with the information you need to ensure suitability. You need to compare the small print of protection offered by other providers as some could add in many more exclusions.

Independent British Insurance also offer income protection that comes with no excess period as the protection is dated back to the first day of your incapacity or from being unemployed. You can claim on the policy from the 30th day and then have an income to fall back onto which lasts up to 12-24 months. When shopping around with other specialist providers you need to read the terms and conditions because providers can offer protection that continues to provide for only 12 months. You should also check to find out how long you need to wait before you can make a claim on the protection because some specialists would ask you wait for as long as 90 days.

Income payment protection can work out to be a better form of plan to fall back on than turning to savings or trying to claim State benefits. Relying on savings might be a let down as they could run dry well before you returned to work or found another job. You do need to be eligible to claim benefits from the State and even if you can very often you find that the money you are entitled to receive falls short of the income you used to bring home. This could leave you with a struggle on your hands and you could have to make drastic lifestyle changes which would affect not only you but your family also.

No-one likes to think about what would happen if they suddenly became very ill or suffered a serious injury or accident. A long lay off in hospital followed by an extended recovery period is not a pleasant topic to dwell on, but ignoring the possibilities could prove costly for anyone who has financial commitments such as debts. Failure to pay money back can have serious consequences and in some cases can even lead to the loss of someone’s home. This is why some people who owe money turn to forms of income payment protection.

A type of financial insurance, this form of cover effectively supports someone’s ability to keep up with commitments like credit cards and other bills should they suddenly lose their income through no fault of their own – be it through injury, ill health or involuntary redundancy. Once sick pay and other benefits expire, some people could effectively find themselves financially high and dry quite quickly, and this is why some turn to insurance to make sure they can keep going even in the event of a serious crisis.

In exchange for regular premiums, income payment protection will pay out tax free monthly sums to policyholders who make valid claims should they suddenly lose their incomes. It is not designed to replace 100 per cent of someone’s wages, but a good portion of them, with cover normally starting at the 50 per cent mark. Income payment protection should not be confused with income protection – a more long-term policy which replaces someone’s income for periods longer than the 12 to 24 month periods usually available with income payment protection.

Payments will normally start after an initial period of around a month has expired following the successful claim, although some policies will backdate payments. The cash can be used for any variety of reasons that the policyholder chooses – like keeping up with a store card, car loan or other debt.

Differing variations of income payment protection include mortgage payment protection insurance and loan payment protection insurance. Both operate in similar ways but are designed specifically for covering mortgage and loan commitments respectively – they will normally pay out in much the same manner following successful claims. Because not everyone’s circumstances are the same, policyholders can normally also choose to cover against just accident and sickness or just involuntary unemployment.

Simon Burgess is managing director of the independent payment protection provider British Insurance. He says: “Income payment protection can provide a crucial safety net for anyone worried about what they would do in a financial crisis. British Insurance can also provide flexible cover at prices often more affordable than high street insurers and lenders. In some cases policies can be bought for just a few pounds per £100 worth of cover, so peace of mind need not break the bank.”

Income payment protection can be taken to ensure that you would not be left struggling to meet essential outgoings if you lost your own income after falling ill, suffering an accident or if you became a victim of unemployment after being made redundant. You can take out the policy by protecting up to a certain amount of your monthly income against these events and then claim this sum of money back as an income that would come tax-free.

You would have to wait for a period of time before the protection could be claimed on and this differs between providers. You then have a certain period of time to find work or recover before payments cease and you need to check this before taking the cover out.

If you look at income payment protection with standalone specialist provider British Insurance you would not only get cover that has the cheapest premiums each month but also one that has just a few exclusions. All payment protection does have exclusions and some providers add in more than others. These have to be checked against your lifestyle so that you can be sure protection would be suitable. Ethical British Insurance gives you the information on their website so you can check before buying.

British Insurance also offer cover that comes with no excess as they will date back the benefit to day one of you falling ill, suffering an accident or becoming unemployed. You can claim after day 30 and you would then have 12 payments, one each month before the policy would stop. When shopping around and comparing premiums you can also check the terms offered by the providers as some providers will continue paying for as long as 24 months. You should also be aware that some will extend the period before claiming and with some providers this could be up to the 90th day of unemployment or incapacity.

The money you received from the protection could be used towards paying any and all outgoings that came into the home each month. This could be anything from putting food on the table to keeping the utility bills paid. You would not have to worry about finding money or juggling bills around which would leave you free to search for a new job if you are unemployed or make a recovery if suffering from accident or illness.

Income payment protection is a better safety net to rely on than risking using your savings and it can also be better than relying on being able to claim benefits from the State. State benefits often do not pay out the income you are used to bringing home and can leave you struggling to continue meeting your essential payments. Savings could also run out well before you have found another job or you have recovered from incapacity as it could take months to get back on track.

Income payment protection is a great way to insure against the possibility that you might lose your own income after becoming unemployed or suffering an accident or illness. You can insure up to a certain amount of your monthly income, which is pre-agreed when you take out the protection with the provider. This sum of money would then be paid back to you if you became unemployed or incapacitated as a tax-free income and would go towards you being able to maintain all of your essential outgoings.

Insuring your income like this does not have to cost a fortune if you choose to take a quote with ethical independent payment protection provider British Insurance. You would be given a quote based on your age and the amount of your income you wish to protect, up to a limit. As the premiums are based on age this allows the younger generation who are often on tight budgets to be able to cover a portion of their incomes.

A policy would go a long way towards you being able to keep on top of all your essential outgoings. Without having something to fall back on you might have to struggle to keep on top of all the bills that came into the home. If you put bills off with the hope of being able to catch up then you could have serious problems and life would become uncomfortable for the whole of the family. With the protection you would just have to wait for the specified number of days before claiming.

If you chose to take out income payment protection with British Insurance there would be no excess as the protection would be dated back to the first day that you became unemployed or incapacitated. You would be able to put in your claim after the 30th day from you being unable to work or from being made redundant and you would have 12 months income to go towards your outgoings. If you looked with other payment protection providers you might find cover that would payout for up to 24 months but you would have to check the terms of the policy to find this out before buying. You would also need to check to find out how many days you would have to stand before you would be able to put a claim in on the policy as with some it is up to 90 days.

Income payment protection with any provider will come with some exclusions in the small print. Ethical British Insurance has few exclusions in their protection and provides you with the information so you can check for suitability before you buy. A policy would then give you peace of mind for its duration which would allow you to concentrate on recovering or it would allow you time to search for work.

Income payment protection would provide peace of mind that you would be able to maintain your essential outgoings if you fell victim to redundancy or should be unable to work after falling sick or suffering an accident. You can insure a pre-agreed sum of your own monthly income and this would then be paid back to you as a tax-free monthly amount. The money could be used towards paying whatever essential outgoings came into the home each month without you having to worry.

One of the cheapest ways for you to secure an income would be to take out the protection with a standalone ethical payment protection provider. You would pay a premium each month which would be based on the amount you want to insure and your age when you apply for the protection. This would mean that the younger age group would be able to make the biggest savings and it is these individuals that often need protection the most as they have many outgoings and a tight budget.

Income payment protection insurance would supply you an income only for a certain period of time which is usually between 12 months and 24 months depending on the provider, British Insurance an ethical standalone specialist would pay for 12 months. You would also have to wait for a period of time before being able to put in a claim. This would usually be between 30 and 90 days and British insurance would ask a period of 30 days before you claim. They would also date the cover back to day one of you being unemployed or from being incapacitated.

Wherever you choose to take out the protection you would have to be aware that there are exclusions and that these need checking against your personal circumstances. British Insurance provides you with the information needed so that you can check for eligibility before taking out the cover. It is essential to check the exclusions and some providers add in more than others.

Income payment protection could be a far more reliable way of protecting your essential repayments each month than relying on savings or being able to claim State benefits. Even if you are eligible to claim benefit from the State when you lose your income often the money you are entitled to does not stretch very far and this could mean that you would still fall short when it came to paying your essential outgoings each month. You might have to make changes to your lifestyle in order to be able to keep up with repayments and this would affect not only you but the whole family. Savings could also let you down as it could be many months before you would be able to get back to work or it might take you this length of time to search around and find work which paid a suitable income.

Being able to continue meeting the demands of your loan repayments is imperative if you are to avoid the consequences of falling behind. One of the first things to be affected would be your credit rating and of course you would have to catch up on missed payments or risk a court appearance. One way of insuring that you would be able to continue servicing your loan repayments in the event that you become unable to work is by taking out loan payment protection insurance.

You agree to insure up to a certain amount of your monthly loan repayment with a standalone provider and this sum of money would be paid back to you if you needed to put in a claim. You insure against the possibility of falling sick, suffering an accident or becoming unemployed by such as being made redundant. The sum of money that was paid back through the policy would go a long way towards you being able to continue meeting the demands of loan repayments even though you had lost your income.

If you were unable to continue servicing the repayments and your credit rating was affected this would make obtaining credit of any kind in the future almost impossible. Even if a lender was willing to take a risk of you, you might have to pay a high interest rate. Your credit rating would also take a lot longer to repair than it did to damage it so this would affect you for some time in the future. If you had taken a loan secured on your home this would mean the lender could repossess your home so being able to maintain the repayments is essential.

Loan payment protection taken with standalone ethical provider British Insurance would save you as much as 80% on the cost of premiums. They would backdate the payments to the first day of you being unemployed or from becoming incapacitated after allowing you to make a claim from day 30 of your unemployment or from being unable to work. You would receive a payment each month you remained out of work or unable to work up to 12 months and after this the cover would cease. While British Insurance does provide one of the cheapest premiums you might choose to look elsewhere for the cover. If you do then you would have to read the small print associated with the cover as some providers could offer 24 months of cover. You would also have to do the same to find out when you would be able to put in your first claim as with some it could be as long as the 90th day.

You would also need to check what exclusions apply in loan payment protection as all providers will add in some and these need checking against your circumstances. Typical exclusions include being in part time employment or of retirement age.

You can choose to safeguard against the possibility that you could lose your income. You might fall ill or suffer from an accident which meant that you were unable to work and if you did not receive full sick pay you could be left with a problem when it came to paying your essential outgoings. The same could happen if you were made redundant and it took many months to find work. If you take out income payment protection the policy would be something to fall back on in times such as these.

You would take out the policy with a standalone provider and insure a pre-agreed sum of your income which would then be paid back, tax-free. You would be able to turn to the money to help towards maintaining all the essential outgoings which came into the home each month. In fact you would be able to put the money to use as you see fit. You would not have to worry about how you were going to be able to meet the food bill nor have the worry of keeping your utility bills paid to keep the home running smoothly along.

The cost of  income payment protection would vary depending on where you chose to take the cover. The cheapest premiums would be with independent payment protection specialists and British Insurance would provide a policy that is backed up with their experience in selling policies. You would be able to check for suitability for protection with the information on their website. Checking exclusions is essential as these could mean you would be ineligible to put in a claim. Once these have been checked against your current lifestyle and you are sure that you would be eligible then you can take out the protection online. The premiums would be based on the amount you cover of your income and how old you are when you take on the policy. As the premiums are age based the younger you are the cheaper your protection will be each month.

There is always a period of deferment in the small print of the income payment protection and you need to compare this along with the cost of the protection. If you choose to take your income cover from independent payment protection specialist British Insurance you can put in your claim on the policy once you have reached the 30th day of being unemployed or from being incapacitated. British Insurance would back pay on your cover to the first day that you were made redundant or suffered accident or illness. Following the onset of payment on the protection you would be able to claim for a certain length of time and then the policy would stop. With British Insurance you receive an income each month for a period of 12 months. Checking the terms of other provider’s policy might reveal a provider that would continue payments for up to 24 months. You would also have to note when the protection would begin to provide the cash benefit, as some providers can ask that you defer from putting in a claim until as long as day 90 after the covered event.