Archive for the ‘Income Protection Insurance Cover’

If you are concerned about the state of the economy or perhaps you are worried about being unable to provide for yourself and your family, if you were unable to work, you might want to consider protecting your income with income protection insurance cover.

The main benefits of the cover are the peace of mind and the monthly income it provides if you were to lose your job due to an involuntary reason.

More About The Policy

The income protection insurance cover will pay you for a period of 12 – 24 months depending on the provider you choose.

The policy will pay out on three main types of involuntary unemployment and they are redundancy, sickness and accident.

Most lenders will have maximum benefit levels so your income will be a percentage of your gross salary. With this in mind you need to ensure the benefit level you choose is adequate.

Some providers will limit the number of claims to one per policy, so this is something you need to know before making a decision.

Policies are usually linked to debts such as loans and mortgages so these debts are often repaid first once the benefit payments start.

In order to make a claim, most providers have deferment periods of 30 – 90 days so you should be aware of this.

How To Choose A Provider

When choosing a provider you should look for companies that provide good value policies for the premiums they charge. The company should be known for it’s ethical practices as well.

The cost of premiums is therefore the main differentiator between providers. If you were to obtain a quote from a high street lender, you will see that the premiums are much higher than that of an independent provider.

For illustration purposes, British Insurance is an ethical provider of protection products and Managing Director Simon Burgess says ‘At British Insurance, we believe in providing value for money, this is why we can provide our customers with up to 80% savings on loan insurance and up to 40% on mortgage protection products’

In addition to good products at affordable premiums, your provider should take the time to explain the terms and conditions of the policy to you. There are often exclusions that go unnoticed and it is these exclusions that can prevent your claim from being successful.

You should read your terms and conditions carefully and question anything you don’t understand. Make sure you know everything you need to know before signing up.

Conclusion

Income protection insurance cover will help take care of your monthly financial commitments if you were to lose your salaried income. Job loss does not have to be stressful. If you have a replacement income it will make finding a new job or recovering from an illness so much easier.

If you are keen to protect your income and maintain your lifestyle during such a difficult time then you may want to consider obtaining an income protection insurance cover policy.

Perilous times often call for drastic measures. There is little doubt that the current economic climate puts practically everyone’s disposable income in peril. Yet the comfortingly effective solution that lies in income protection insurance cover is anything but drastic. It is a simple, straight forward and very affordable means of preserving an income even when the perils of modern working life are strewn in the policy holder’s path.

The British economy is now formally in recession. This comes at a time when the entire finance system was nearer the verge of total meltdown than in any year since before World War I, so has said the Governor of the Bank of England, Mervyn King, in a report carried by the Telegraph newspaper on the 22nd of October 2008. The stage is grimly set for falling standards of living and levels of unemployment variously forecast to surpass the 2 million mark and rise close to 3 million during the course of next year.

Despite the desperate economic forecasts, millions of people of course still have their mortgages, rent and countless other household bills to pay. Yet accidents happen, illnesses prevent them from going into work and earning their pay. And the rising tide of redundancies will stop many of them from earning an income at all for the several months it will probably take to find alternative employment.

And that is what makes income protection insurance cover such an indispensable part of the armoury of home finances these days. It will provide an essential replacement income for however many months it takes to recover from an accident or illness or however long it takes to find another job, generally for up to a maximum of 12 months – and some policies will even extend that maximum payment period for up to 24 months.

Fortunately, it is not that expensive either. Indeed, some of the more progressive policies will even take into account the fact that the younger you are, the shorter the period of any incapacity is likely to be or the sooner it is that you will find alternative employment following redundancy, so the shorter the claim period and, therefore, the cheaper the monthly premium you will need to pay. In any event, however, it should be possible with most policies to cover up to 50% of the normally earned income or £1,000 a month, whichever is the lower figure. Such a replacement income, of course, could make all the difference between continuing to make ends meet and the alternative of racking up the sort of debts which could prove almost impossible to clear once a return to normal working can be achieved.

“There’s nothing alarmist about being worried for your job or wondering how the bills would get paid if you were unable to work for several months”, says Simon Burgess of specialists in income protection insurance cover, British Insurance, “it’s simply a very sensible precaution that can amount to a real lifeline in the inevitably stormy economic waters that lie ahead for us all”.

Income protection insurance cover would provide the security of replacing a portion of your income should you be unable to work by accident, sickness or redundancy. You could insure a set amount of your income pre-agreed with the provider against these events, and if you had to make a claim after becoming a victim to one of them you would claim back the sum you insured.

You have to wait for so many days before making a claim and the cover would then last for so long before expiring. This would depend on the provider you chose to take your protection with. If you chose to take out income protection insurance cover with leading specialist provider British Insurance this would be from day 30. The protection would be dated back to the first day of redundancy or incapacity and it would payout for as long as 12-24 months. If you choose to check out protection with other payment protection providers always read the terms of the policy to check for when the policy would start to provide your income, as some might state 90 days of waiting before you can claim.

When checking the policy details also check the exclusions as they are included in all protection. Ethical British Insurance would add in just a few exclusions and supply the information needed to check suitability of the protection. Other specialists might put in many more exclusions and it is imperative you do check for eligibility against your lifestyle.

The income you would receive from your policy would allow you to be able to maintain all of the essential outgoings that come into the home each month. This could be anything from paying the monthly food bill in the supermarket to keeping the home warm and lit. You would not have a struggle on your hands to find this money and you would not have to make changes to your lifestyle or cutbacks which affect the whole family in order to ensure that you would have the money. Instead a policy leaves you able to look for work without this worry or in the case of incapacity you can concentrate on making a recovery.
Your income protection insurance might be a better form of plan to rely upon rather than risk being eligible to claim an income from State benefits. While you might be able to claim State benefits any income you might be entitled to receive might not match your own income. The money might not be enough to meet all outgoings which could still leave you struggling. It could also a better idea than relying on savings as a means of paying your outgoings, as you might need to rely on them for many months and they might not last for the duration of your unemployment or incapacity.

One of the hardest things with which to come to terms is the knowledge that an ailing relative or loved one needs your constant care and attention, yet you cannot afford to take the unpaid time off work to provide that care. It is welcome news indeed, therefore, that some forms of income protection insurance cover now also include provision for claims by the policy holder who needs to take that time off work to care for a family member.

In common with the usual principles of payment protection insurance (PPI) generally, the benefits are paid on a monthly basis and effectively serve as a replacement income for the period during which the policy holder needs to absent him or herself from normal employment in order to care for the sick family member. The payments continue to be made until the family member has recovered sufficiently from the illness or condition and the policy holder is able to return to work, or up to a maximum of 12 months, whichever is the sooner. Longer periods for the payment of benefits may be available at a higher premium rate, though the product is relatively new, so they might prove harder to find.

This latest extension of cover for carers is designed to provide a temporary solution to the need for home care and would not be appropriate for longer-term needs.

It is important to remember, too, that the insured person in these cases is the potential carer and not the person for whom the care is needed. The insured, therefore, will need to be eligible for payment protection insurance in the normal way. That is to say, they will need to be of working age (between 18 and 65), have been in regular employment for at least six months and continue to be in regular employment at the commencement of the cover and are permanently resident in the UK, Channel Islands or Isle of Man. The maximum amount of cover is therefore also based on the policy holder’s salary and can typically be up to 50% of his or her normal earned income or £1,000 a month, whichever is the lower figure.

A pioneer of this additional, carer’s element of income protection insurance cover is market leader and independent insurance provider British Insurance, whose managing director, Simon Burgess, has this to say about the novel element of cover: “there are many occasions when an illness in the family means that someone needs the kind of looking after and care that a relative can offer. How many of us can normally afford to take the time off work to offer that care, however? We are especially proud to offer this latest refinement to income protection insurance cover, therefore, since it will allow many breadwinner’s to offer fully rounded support for their families – not just financially, but in their caring role during times of illness too”.

If you ask your friends or colleagues how secure they think their jobs are they would probably say they take things day by day and hope for the best. If you were to ask yourself the same question, what will the answer be? If you too are uncertain of what the future holds then perhaps now is the time to consider income protection insurance cover.

By protecting your income you will have the assuredness that if you were to lose your job, your monthly bills will be taken care of and you’ll be able to maintain your current lifestyle.

So What Does the Policy Entail

• Firstly you will receive a 100% tax free payment each month. You should know that the benefit will not be equal to your earned income, but the payout is still quite good
• The policy is not linked to your mortgage so the cash is paid directly to you so you can spend it as you like
• There are maximum benefit levels so you’ll have to ensure you’ll be able to live off the amount you receive
• The policy will only cover job loss due to an involuntary act such as sickness, accident or redundancy
• The policy will pay out for a maximum period of 12-24 months

Choosing a Provider

If you apply for a mortgage from a high street provider, then you might be enticed to purchase the accompanying protection product. You shouldn’t feel obliged to make a decision there and then you should always check to see what the standalone and independent providers have to offer.

More often than not you’ll find the costs of income protection insurance cover premiums are much lower with the independent providers. One example of this is British insurance. This standalone specialist protection insurance provider is known for offering savings of as much as 80% off premiums on its protection products.

Knowing that affordable policies exist, there is no need to pay more for your premiums. Before you make your decision, why not see what quotes you can obtain on a standalone policy.

Summary

The main purpose of the income protection insurance cover is to help you transition smoothly between jobs if you were to find yourself out of work. It also gives a sense of security because you know if you lost your job, you won’t suffer financially.

You can take out income protection insurance cover to guard against a loss of income due to accident, sickness and unemployment. You would insure a portion of your own income against these events, which would be pre-agreed upon with the provider at the time of taking out the insurance. The sum you insured would be the income you received back, tax-free if you made a claim and would go towards maintaining all of your essential outgoings.

If you were to lose your own income and have nothing to fall back on then life could become very difficult not only for you but for your whole family. You might have to make drastic cutbacks and be scrimping and scraping to be able to continue meeting your essential outgoings. You could also have to put off some bills in the hope that you could catch up on them in the future. With protection you would have a sum of money to rely on towards servicing any bills that came into the home each month, which would make life a lot easier while you searched for work or recovered.

An independent payment protection provider would be the cheapest way to take out income protection insurance cover. You can shop around online and compare protection premiums and one of the cheapest will come from independent leading payment protection provider British Insurance. They offer protection that comes with few exclusions, which need checking against your circumstances and you are provided with the information on the website of British Insurance to do so. You would also get a policy that would come with no excess as it would be dated back to the first day of your unemployment or from you being incapacitated. You could claim on the protection once you have reached the 30th day and would then receive an income for up to a maximum of 12 months.

When comparing the cost with other providers you would have to check the terms to find out when you can put in a claim as some providers might extend this up to 90 days. You also need to find out how long the protection would payout up to as with some providers it could be 24 months.

Income protection insurance cover is a far more suitable plan than relying on being able to claim benefit from the State if you are incapacitated or become redundant. You would have to meet certain criteria in order to get any benefit and could have to wait some time before seeing any money. The money you could be entitled to claim could fall far short of the income you are used to bringing home and this could leave you without enough to maintain all of your outgoings. If you were thinking of using savings as a means of getting by while you found work or recovered this could also be a let down as it could take you many months to recover or find a job and savings might not last this long. At least with a policy you would have between 12/24 months with some income towards your outgoings.

Income protection insurance cover could be your lifeline against unemployment and incapacity. The cover would protect your essential repayments against you losing your income after being made unemployed by redundancy and it would also cover accident and sickness which meant you were unable to work. If you shop around online with a specialist in payment protection then you can make the biggest savings.

With ethical payment protection provider British Insurance you can take out a policy by insuring a pre-agreed sum of your income. You would then be able to claim this sum back as a tax-free income once you had been unable to work or had been unemployed for a period of not less than 30 days. British Insurance would also back pay the benefit to day one of you being made redundant or from you being incapacitated. They would then payout your income each month for as long as 12 months if you remained unable to work or unemployed for that long. After this period of time the protection would then stop. The sum of money you received back from the policy would go towards you being able to maintain all the essential payments that came into your home each month.

If you were to look around and compare the cost of income protection insurance cover with other providers you would have to check their terms and conditions. Some providers might offer to payout on your protection for as long as a maximum of 24 months. You also need to know when they would begin to payout on the cover as this can differ too. Some providers might state a deferment period of 90 days before you would be able to stake a claim on the protection. The small print also needs to be checked for any exclusions which might apply. There are always some to be found in all protection plans and some providers adding in more than others. British Insurance adds in the most common ones and they supply you with the information you need online to check the exclusions against your circumstances before taking out the cover.

Income protection insurance cover could make a great deal of difference to you and your family if you should lose your income through no fault of your own. Without having something to fall back on each month you might have to make severe cutbacks in order to be able to manage to maintain all of the outgoings that come into the home each month. You could be left juggling around bills and putting them off with the hope that sometime in the near future you would be able to catch up. Of course you could rely on savings as a means of paying the essential outgoings. However as you would not know how long it might take to find work or make a recovery this could be a huge mistake as your savings could deplete before you had returned to work or found work. At least with cover you would be protected and have peace of mind for the term of the policy.

Income protection insurance cover would supply you with a replacement tax-free income if you were to lose your own after falling ill, suffering sickness or became unemployed through redundancy. You can take out protection with an independent provider and this is often the way to make the biggest savings on the cover.

You would take out income protection insurance cover by insuring up to a pre-agreed sum of your income and this would then be the amount that was paid back to you, tax-free. You would be able to put the money towards any bills that came into the home and ensure that you would not fall behind on payments. The income you received would go a long way towards you being able to continue meeting all of your repayments which could be anything from putting food on the table for the family to paying utility bills.

You would have to look at the terms of the policy as some providers will begin to payout once you have been unemployed or incapacitated for 30 days and others would ask that you wait until as long as 90 days before you put in your claim. The same would apply as to how long the policy would payout, with some providers it is 12 months and others supply you with 24 months of protection. If you were to choose ethical payment protection provider British Insurance this would be from day 30 and the protection would payout for up to a maximum of 12 months.

You would also have to check the terms and conditions of any income protection insurance cover you are considering taking out as there are exclusions which would have to be met against your circumstances. If you have chosen to take out the protection with British Insurance you would be given access to these on their website so checking is easy. Some providers could add in more than others so always check for this when comparing. Once you have you would have something to fall back on if and when you were to make a claim. A policy is a far better back up plan than risking being able to claim State benefits. Even if you are eligible to claim benefits from the State you might not get enough money to be able to continue meeting the demands of all your outgoings each month. Risking turning to savings could also be futile as you could have to take many months to make a recovery. It might also take a long time to find work again and savings could run dry well before then.

Income protection insurance cover would give you an income to replace your own if you became sick, suffered an accident or became unemployed due to such as being made redundant. You would take out insurance for a pre-agreed sum of your income and then be able to claim this back as a tax-free monthly amount if and when you had to make a claim.

If you chose ethical payment protection provider British Insurance for your cover you would be able to make a claim and start receiving an income once you had been unable to work or had been unemployed for a period of no less than 30 days. British Insurance would back date the claim to the first day of unemployment or incapacity and then continue to pay out an income each month for a period of 12 months.

As with all insurances, you would also have to check the terms and conditions of income protection insurance to be sure that you would be eligible to make a claim as all payment protection has exclusions and some providers can add in more than others. British Insurance adds in just the most frequently seen exclusions and provides you with the information needed so you can check eligibility before taking out the cover.

Income protection insurance cover would allow you a great deal of peace of mind. You would not have to make any cut backs in order to be able to maintain your essential outgoings and you would not have to put off bills in the hope that you would be able to catch up with them in the future. You could use the income that the policy supplied you with towards any bills that you might need to pay; this can be anything from paying the grocery bill to being able to keep the home warm.

Many individuals rely on being able to claim benefit from the State if they lose their own income. While many are eligible to claim from the State you would have to meet certain conditions. For instance if you have savings over a certain amount you would be expected to use these, which means if you have been given redundancy money you would have to use this first. The help you did receive if eligible might not be the income you are used to receiving and you might not have the money needed to be able to keep on top of everything. Savings can also be a let down and might not provide you with enough to get by. They might suffice in the short term but as you would not know how long it might be before you are able to get back to work or how long it might take to find another job they might not stretch very far. At least with income protection insurance cover you would know that you had a period of financial relief while you found alternative employment or got back to full fitness again.

Income insurance protection cover  could help you to maintain your essential repayments each month if you lost your own income due to incapacity or involuntary redundancy. Many times employers do not pay out full sick pay and even if they do it does not last for very long. You could take a chance on using savings but as you would not know when you would find work or make a recovery and be well enough to go back to work they might not last. State help could also be a let down and you may not be entitled to receive enough to cover all the outgoings you make each month.

If you choose to shop around with independent payment protection providers then covering your outgoings does not have to work out expensive. Premiums with ethical specialist British Insurance would be based on the amount you want to insure of your income and your age. All providers will allow you to insure up to a certain amount each month which is pre-agreed at the time of taking out the policy. This sum of money would then go towards you being able to finance your repayments so that you do not fall into debt. The money comes tax-free and can be used for whatever payments you need to make.

You would have to wait for a period of time of being unemployed or of being unable to work before you could put in a claim. This is dependent on the provider you choose to take out the cover with. You would then receive an income each month for a period of time before the policy ends. British Insurance would payout once you had been incapacitated or from being made redundant for 30 days or more. The policy would be back paid to the first day that you become unemployed or from being unable to work. You would then have 12 months of protection in which to concentrate of making a recovery or to get back to work and the cover then ends.

Some providers could offer income protection insurance cover that would payout for up to 24 months and others might state in the terms and conditions that you cannot claim on the protection for up to as long as the 90th day. Along with the cost of the protection you also have to check the small print for the exclusions. These have to be checked against your circumstances if you want peace of mind of knowing that you would be able to put in a claim.