What would you do for money if you were suddenly out of work for involuntary redundancy, or potentially incapacity for accident or illness? If you don’t have plans, your family could be at serious financial risk. While some people simply neglect to consider this financial protection, others believe the State supports everyone while they are out of work. You need to be proactive in covering your family with a payment protection product. This sector of the insurance industry is specifically intended as a way to replace lost job income following a covered event.

The three products that form payment protection insurance are loan payment protection, mortgage payment cover, and income payment protection insurance. These products are your best avenue for redundancy protection in Northern Ireland. They all pay monthly benefits to replace lost job income after a covered event. Loan protection allows you to pay your monthly loan and credit card payments. Mortgage payment insurance is good for protection your home as you can use it for paying your monthly mortgage repayments. Income payment protection insurance is usually used for such things as bill payments, groceries, and more.

More emphasis on redundancy protection in Northern Ireland

The eligibility guidelines for payment protection products are usually pretty straight-forward. Generally, you have to be employed full time for at least six months to get benefits protection. People that are employed on a part time basis, retired, or dealing with pre-existing medical conditions are typically not eligible for benefits.

Assuming that you are eligible for benefits, you need to look over policies carefully to find the best protection for your needs. One area to focus on is the length of benefits payouts. Some policies would pay you benefits over 12 months, while others pay benefits over a 24 month period of time.

Another issue to address is the starting point of benefits. You can find some plans that start benefits 30 days after the insured event. Others, though, wouldn’t deliver the initial payment until 60 or 90 days after the event takes place. Not everyone can wait that long because they don’t want a short gap between job income and the first benefit payment.

You can always opt for whatever amount of cover you desire. However, there is usually a maximum allowable benefit. Most often, you can cover the lesser of 1500 Pounds or half your regular gross monthly income. Benefits are tax free.

Protected events with redundancy protection in Northern Ireland

The two common situations that can usually cover with your policy are involuntary redundancy and accident or illness. These two events included in a plan offer a well rounded protection against much of the causes that could leave you out of work.

Surprisingly, some people opt to not protect against both types of events, though there may sometimes be good reason for that. If you have good benefits for incapacity through your employer, it might not be sensible to pay for the protection on your own. Other people do need protection for incapacity from accident or sickness, but try to save on premiums by not buying redundancy benefits. This is not a good idea unless you have funds to sustain you, and you can quickly find a new job.

You might also get benefits for carer cover, if you find a good provider that includes this protection at no extra cost. This protection pays monthly replacement benefits if you have to leave work to manage the health of a sick or injured family member.

Finding a good policy for your money

Independent insurance specialists offer payment cover policies that are much more affordable than those offered by financial institutions. Loan payment cover can often be found at rates that are as much as ten times cheaper. Mortgage cover is around four times less expensive. Income payment cover can be about fives times cheaper in most cases.

Before a 2005 super complaint, financial institutions managed to control much of the market, despite their higher premium rates. They did this by leveraging their loan products and pressuring borrowers into taking on their policies. The Citizen’s Advice complaint was referred to the Competition Commission by the Office of Fair Trading.

After its review of the payment cover sector, the Commission discussed a seven day ban on the sale of payment cover to new borrowers, thus giving some relief to consumers. There were other recommendations as well. Thanks to the improved awareness and resolutions, you can now get much better value on redundancy protection in Northern Ireland.

Imagine for a second if you were to suddenly lose your income after becoming incapacitated or becoming unemployed. Where would you get the income from to continue meeting your mortgage or loan repayments each month? Where would you get the money to maintain your rent, utility bills or even the family food bill for the month? All of these outgoings would have to be met somehow. One way of protecting against the unknown to ensure you would have an income is to take out payment protection.

What does payment insurance do?

Payment protection insurance (PPI) does exactly what its name suggests; it provides you with payment security. You would choose the type of insurance needed and then receive a payment each month towards being able to continue servicing the payments you have chosen to protect.

This income would be tax free and could stop you from falling into debt with your repayments. It would be essential to keep your mortgage repayments up to date otherwise you would be at risk of losing your home. Payment arrears of a secured loan could also mean you losing your home and life would become very uncomfortable if you were unable to keep the home warm and lit. With payment insurance behind you there would be an income coming into the home.

When can I make a claim on the insurance?

Checking the small print of any policy you are considering taking out is essential as some payment insurance providers will allow you to make a claim on your protection policy once you have been unable to work or have been redundant for 30 days. However some might also state a deferment period of 90 days before you are able to make a claim.
If you are taking out protection for your mortgage repayments then you would have to consider the fact that mortgage lenders could choose to start legal proceedings against you with as little as just a few months’ mortgage arrears which you cannot repay. If you have to wait for 3 months before seeing any benefit your lender could already have begun court proceedings.

How much money would I get from the policy?

When taking out payment protection you would be able to choose how much of your mortgage or loan repayment or your income you want to protect. This amount would be pre-agreed with the provider and is the amount you would get back each month as tax free payments, should you need to make a claim.

If you chose to protect your monthly income for example with income insurance protection then typically providers could allow you to insure half of the gross monthly income you bring home or £1,500 whichever happens to be the least amount.

How long would payments last?

The length of time the provider would continue providing you with an income would again depend on your provider so checking before taking out cover is essential. Usually providers will offer protection that pays out for either 12 months or 24.

Payments over 12 months could provide more than enough time for you to have searched and found work or to have made a recovery and been able to get back to work. During this time you would have peace of mind of a substantial sum of money towards your repayments and outgoings.
Another point to consider is that the premiums for a 24 month policy would be a great deal more than cover lasting for 12 months.

Would you be eligible to take out protection?

As with any type of insurance you would have to check payment protection to ensure that you would be eligible to make a claim on a policy. All providers will give you the information you need to ensure that you can check before taking out cover.

For instance to be eligible you would have to be in full time work and have worked for at least 6 months before taking out the cover. You would also have to live in the UK, Isle of Man or the Chanel Isles to be eligible to take out the protection.

What other exclusions could there be?

The exclusions would depend on your provider with some adding more than others into their payment protection insurance. Therefore when comparing the premiums for the policy you should also compare the small print and check what exclusions there are in the policy.

If you suffer an ongoing illness at the time of taking out the policy then you would have to check very carefully as there will be limitations.

Certain illnesses would also be excluded and these might include illness brought about through stress or depression.
If you are self-employed then you would also have to check carefully as usually you would only be able to make a claim if you had to stop trading permanently through no fault of your own.
Of course these are just some of the most common exclusions and there could be many more.

Choosing the level of cover needed

When taking out payment protection you can choose the level of cover you want. Unemployment and incapacity cover can be taken out together. In this case you would be eligible to make a claim if you were to suffer from either of the events.

Should you be one of the lucky ones who gets a full sick pay plan then you might just want to consider taking out insurance against the possibility of redundancy alone. If it suited your lifestyle better then you could consider just taking out incapacity insurance as a standalone policy.

The events you cover would reflect on how much you pay for the premiums. Therefore you will only be paying out for protection that you need.

The different types of protection insurance

If you have mortgage repayments to protect then mortgage payment insurance should be considered. With this policy behind you there would be a substantial amount of income coming into the home that you would be able to use towards meeting your mortgage repayment each month. This would help to ensure you keep out of mortgage arrears.

Loan insurance would protect your monthly loan repayments. Secured loan repayments that you fall behind on can lead to repossession of the secured property and loan cover would supply an income to ensure you were able to continue servicing your loan repayments. Unsecured loan debt could also see you being taken to court and losing your possessions to bailiffs. With cover behind you there would be less chance of this happening.
If you covered your income with income payment protection then you would have money towards all of your essential outgoings. Cover could make your life a great deal easier during your unemployment or incapacity.

Why you should consider protection insurance

Many individuals believe that they would be able to get benefits from the State if they lose their income. While you could get money from the State you would have to prove that you were eligible.

If you were to claim an income from the State that for your mortgage repayments you would have to realise that you would only receive an income towards the interest part of your mortgage and up to a defined amount. You would also not get any money until the 13th week and by then you would already be in arrears of 3 months.

If you want to use the income for your essential outgoings you would have to take into account that very often any money you are entitled to from the State often nowhere near matches the income you are used to bringing home.

Ensure you get a good deal on your insurance

If you choose to shop around and compare the premiums for payment insurance then you stand more chance of getting the best deal. Standalone providers could save you as much as 40% on mortgage cover and 80% on loan protection. You would also be able to compare the small print of the cover with different providers so that you get the right policy for your needs.

Should you take protection offered by the lender then you will usually pay way over the odds for the insurance. At the moment lenders work out the total cost of payment protection over the term of the loan or mortgage and then include it in with the money you borrow and you pay interest on the protection. You would also not be able to choose the events to cover, nor how much you want to protect.

The benefits of having protection behind you

The biggest benefit to having payment protection behind you is the peace of mind that cover brings. Without an income coming into the home so that you are able to maintain your outgoings and repayments your life would be a great deal more stressful than it would be if you have cover behind you.
You would know exactly how much money you would have coming into the home each month and how long it would last. This would leave you free to get on with looking for work or to concentrate on a recovery.
Of course by choosing to shop around and compare the cost of payment protection you can be assured of getting the cheapest policy for your needs, which could be tailored to suit your individual lifestyle.

Imagine for a second if you were to suddenly lose your income after becoming incapacitated or becoming unemployed. Where would you get the income from to continue meeting your mortgage or loan repayments each month? Where would you get the money to maintain your rent, utility bills or even the family food bill for the month? All of these outgoings would have to be met somehow. One way of protecting against the unknown to ensure you would have an income is to take out payment protection.

What does payment insurance do?

Payment protection insurance (PPI) does exactly what its name suggests; it provides you with payment security. You would choose the type of insurance needed and then receive a payment each month towards being able to continue servicing the payments you have chosen to protect.

This income would be tax free and could stop you from falling into debt with your repayments. It would be essential to keep your mortgage repayments up to date otherwise you would be at risk of losing your home. Payment arrears of a secured loan could also mean you losing your home and life would become very uncomfortable if you were unable to keep the home warm and lit. With payment insurance behind you there would be an income coming into the home.

When can I make a claim on the insurance?

Checking the small print of any policy you are considering taking out is essential as some payment insurance providers will allow you to make a claim on your protection policy once you have been unable to work or have been redundant for 30 days. However some might also state a deferment period of 90 days before you are able to make a claim.

If you are taking out protection for your mortgage repayments then you would have to consider the fact that mortgage lenders could choose to start legal proceedings against you with as little as just a few months’ mortgage arrears which you cannot repay. If you have to wait for 3 months before seeing any benefit your lender could already have begun court proceedings.

How much money would I get from the policy?

When taking out payment protection you would be able to choose how much of your mortgage or loan repayment or your income you want to protect. This amount would be pre-agreed with the provider and is the amount you would get back each month as tax free payments, should you need to make a claim.

If you chose to protect your monthly income for example with income insurance protection then typically providers could allow you to insure half of the gross monthly income you bring home or £1,500 whichever happens to be the least amount.

How long would payments last?

The length of time the provider would continue providing you with an income would again depend on your provider so checking before taking out cover is essential. Usually providers will offer protection that pays out for either 12 months or 24.

Payments over 12 months could provide more than enough time for you to have searched and found work or to have made a recovery and been able to get back to work. During this time you would have peace of mind of a substantial sum of money towards your repayments and outgoings.

Another point to consider is that the premiums for a 24 month policy would be a great deal more than cover lasting for 12 months.

Would you be eligible to take out protection?

As with any type of insurance you would have to check payment protection to ensure that you would be eligible to make a claim on a policy. All providers will give you the information you need to ensure that you can check before taking out cover.

For instance to be eligible you would have to be in full time work and have worked for at least 6 months before taking out the cover. You would also have to live in the UK, Isle of Man or the Chanel Isles to be eligible to take out the protection.

What other exclusions could there be?

The exclusions would depend on your provider with some adding more than others into their payment protection insurance. Therefore when comparing the premiums for the policy you should also compare the small print and check what exclusions there are in the policy.

If you suffer an ongoing illness at the time of taking out the policy then you would have to check very carefully as there will be limitations.

Certain illnesses would also be excluded and these might include illness brought about through stress or depression.
If you are self-employed then you would also have to check carefully as usually you would only be able to make a claim if you had to stop trading permanently through no fault of your own.

Of course these are just some of the most common exclusions and there could be many more.

Choosing the level of cover needed

When taking out payment protection you can choose the level of cover you want. Unemployment and incapacity cover can be taken out together. In this case you would be eligible to make a claim if you were to suffer from either of the events.

Should you be one of the lucky ones who gets a full sick pay plan then you might just want to consider taking out insurance against the possibility of redundancy alone. If it suited your lifestyle better then you could consider just taking out incapacity insurance as a standalone policy.

The events you cover would reflect on how much you pay for the premiums. Therefore you will only be paying out for protection that you need.

The different types of protection insurance

If you have mortgage repayments to protect then mortgage payment insurance should be considered. With this policy behind you there would be a substantial amount of income coming into the home that you would be able to use towards meeting your mortgage repayment each month. This would help to ensure you keep out of mortgage arrears.

Loan insurance would protect your monthly loan repayments. Secured loan repayments that you fall behind on can lead to repossession of the secured property and loan cover would supply an income to ensure you were able to continue servicing your loan repayments. Unsecured loan debt could also see you being taken to court and losing your possessions to bailiffs. With cover behind you there would be less chance of this happening.

If you covered your income with income payment protection then you would have money towards all of your essential outgoings. Cover could make your life a great deal easier during your unemployment or incapacity.

Why you should consider protection insurance

Many individuals believe that they would be able to get benefits from the State if they lose their income. While you could get money from the State you would have to prove that you were eligible.

If you were to claim an income from the State that for your mortgage repayments you would have to realise that you would only receive an income towards the interest part of your mortgage and up to a defined amount. You would also not get any money until the 13th week and by then you would already be in arrears of 3 months.

If you want to use the income for your essential outgoings you would have to take into account that very often any money you are entitled to from the State often nowhere near matches the income you are used to bringing home.

Ensure you get a good deal on your insurance

If you choose to shop around and compare the premiums for payment insurance then you stand more chance of getting the best deal. Standalone providers could save you as much as 40% on mortgage cover and 80% on loan protection. You would also be able to compare the small print of the cover with different providers so that you get the right policy for your needs.

Should you take protection offered by the lender then you will usually pay way over the odds for the insurance. At the moment lenders work out the total cost of payment protection over the term of the loan or mortgage and then include it in with the money you borrow and you pay interest on the protection. You would also not be able to choose the events to cover, nor how much you want to protect.

The benefits of having protection behind you

The biggest benefit to having payment protection behind you is the peace of mind that cover brings. Without an income coming into the home so that you are able to maintain your outgoings and repayments your life would be a great deal more stressful than it would be if you have cover behind you.

You would know exactly how much money you would have coming into the home each month and how long it would last. This would leave you free to get on with looking for work or to concentrate on a recovery.

Of course by choosing to shop around and compare the cost of payment protection you can be assured of getting the cheapest policy for your needs, which could be tailored to suit your individual lifestyle.

If you are looking for payment protection in Glasgow then you might take it with the lender on the high street or you could choose to search around for a policy and compare the cost with a standalone provider. By doing this you could usually make some great savings on the cost of a policy.

What is payment protection?

A payment protection Glasgow insurance policy would provide you with an income in the event that you were to lose your own income. You could claim on your policy if you suffered involuntary unemployment or incapacity and then get an income back each month for up to the term of the cover once you had stood to a period of deferment.

The types of protection

You would have to choose the most suitable payment protection insurance (PPI) policy for you needs. You could choose to take out mortgage, loan or income protection based on what you have to payout each month. Mortgage payment protection insurance (MPPI) cover would protect your mortgage repayments against the possibility of you falling onto mortgage arrears. Loan payment protection insurance cover supplies an income towards the repayments of your secured or unsecured loans. Income payment protection insurance would give you money to spend as you wanted towards any essential repayments.

How much income would I get back?

The amount of income that you might get back from your policy would be dependent on how much of your loan/mortgage repayments you wanted to cover or your income. This amount would be pre-agreed by your provider as they would limit this. This is then your tax free income for up to the term, should you have to make a claim on the insurance.

How long would I have to wait?

You might have to stand to the first 30 days of involuntary involuntary unemployment or incapacity before claiming or you could have to wait for up to the 90th day with some providers so you would need to check at the time of applying for the policy. 90 days could be a long time to wait as you might have already suffered 3 months of arrears at this time. Therefore you could want to ensure that you could make a claim sooner.

How long would I be able to claim on the insurance?

This again could differ with providers. Some might pay over a period of 12 months if you were to need it and with other providers you could be entitled to receive up to 24 months of cover were you to remain unemployed or incapacitated for this long. You do have to take into account that should you take out a policy that paid over the longer term then you would need to pay more in premiums each month.

Choosing the events you want to cover

When considering taking out payment protection in Glasgow you can take out a policy that would provide you with an income if you were to become unemployed or incapacitated. However you might want to tailor your policy to suit your needs. For instance you could want just to protect against losing your income to involuntary unemployment alone or you might choose just to take out a policy for incapacity alone if this were to suit your needs more.

The event or events that you take your protection for would go towards determining how much you would have to pay for the policy. This of course works to your advantage as you are only paying out for the protection that you could actually benefit from and cover that is needed.

Check the small print to ensure suitability of the policy

Any form of payment protection cover would have some exclusions in the cover even if this is just the most common of exclusions. Common exclusions include you having to be in full time work when applying for the policy and you must have been holding down a full time position at the time of you applying for your policy. Some providers may include more than others in their policy so you would have to check with the provider at the time you applied for the policy.

Why you could consider a policy

State benefits can be a letdown as they often do not supply the income that you used to bring home when you were in work. Should you be claiming an income towards your mortgage repayment then you would have to bear in mind that you would only get an income towards meeting the interest part of your repayment. You would also have to take into account that you would not see money until the 13th week of involuntary unemployment or incapacity.

Benefits to taking out a policy

You could choose what you wanted to protect with your payment protection Glasgow policy based on what you have to pay out. You choose how much of your income or repayment you want to protect and you would know when you could claim and how much money you would see from your policy.

Payment protection is a word you might not have heard before, or which might apply to types of insurance you have already got on certain debts. Essentially it’s a very broad and general phrase for a number of different policies designed to supply tax-free cash support with repayments on loans and credit cards. It normally pays out in the event that somebody loses their income due to something beyond their control, such as involuntary redundancy, long-term illness, or injury after an accident. Payment protection in Scotland is no different, and can be bought from a wide variety of firms at different premiums and cover levels.

Types of this insurance will provide somebody with the income to help them pay off their monthly bills for loans, mortgages, and credit cards, or which will provide a general lump sum to spend as they wish. Nearly all policies apply to the circumstances listed above.

You do not automatically have to be a mortgage, or loan or credit card holder to get this kind of cover, normally a company simply requires that an applicant for payment protection in Scotland has a regular, monthly income.

You do not have to take out a policy which covers accident, injury and involuntary unemployment. It’s possible to get deals which guard your repayments and income only in the event of one of these circumstances, or perhaps two of them. This is helpful for people who are particularly concerned about one circumstance, such as involuntary redundancy. Somebody might be able to save money by choosing a policy which only applies to their one concern.

The benefits

To qualify for the first payments, a policyholder will often need to pass through an excess period, or holding period, after they have lost their income. This can be 30 to 90 days depending on the policy, and the policyholder can often choose how long they would wait. How much someone can expect per month is often also up to them, although companies put strict limits on the maximum monthly amount someone can get. So perhaps up to £1,500 pounds or 50 per cent of your gross monthly income, whichever is the least.

This can continue for up to 12 months or until somebody gets back into work, on their feet, and earning again, whichever date happens first. There are some policies that offer 24 months protection but tend to come with a much higher premium.

Also note that policies do not provide payments which fall in value over time. They remain consistent throughout the payout period. Someone’s cover stays in place provided they keep up with the premiums, which charge a monthly fee just as with any other more common type of insurance.

To qualify for payment protection in Scotland, somebody will have to fulfil some basic criteria set down by the insurance company. Somebody must be a permanent resident in the UK, normally and must work for a minimum amount of time per week. Many companies also ask that the person’s employment is not temporary, seasonal, or a irregular. It is also usual for firms to ask that somebody has been in their current job for a set period, normally around six months.

To qualify on a conventional policy, somebody must have been made redundant from a job rather than being sacked or accepted an offer of redundancy. There are also certain circumstances when somebody won’t be able to make a claim on the illness part of a policy, often if they end up out of work and lose their income due to a pre-existing medical condition, often defined as something which they were suffering from before they organised the policy.

Payment protection in Scotland has come about because of the common trend of certain types of debt in households and the general failure of the state benefit system to provide enough to cover people with considerable commitments. For example, somebody with a mortgage will not be able to expect enough from the welfare state to cover even half of their repayments in many circumstances. Even with a combined incapacity and job seeker’s allowance benefit, many people would find that the payments fall short. Likewise, redundancy packages can be even less generous, as people of a certain age who have only worked for a company for a set amount of time will only be entitled to a few days’ worth of pay in some circumstances.

This is why many people rely on payment protection in Scotland as a safety net against some of the impact of falling behind with debt when they lose their income through no fault of their own. Hopefully many people who take out a policy will never have to use it, but if they do it could be crucial in protecting their credit rating and even the roof over their head. Many people have also found that they can get a policy quite cheaply by shopping around and getting quotes from more independent providers.

It’s often said that the trouble with loans is that they usually have to be paid back! That may not cause you much difficulty while you have secure regular income but if you lose that income you could struggle to meet your loan repayments – unless you have insurance covering payment protection in Liverpool.

Most people do have loans or credit of some sort. Whether they’re for the car, mortgage, the TV or the HP on the furniture, it may be difficult to live a modern lifestyle without them.

Yet if you’re made redundant or suffer an accident or sickness that means you cannot any longer earn income, those loans can almost instantly turn into a nightmare. If you cannot keep up your payments you could be facing legal debt recovery actions and repossession of your goods not to say perhaps your house.

If you do lose your income, it is usually a good idea to contact the various loan organisations that you owe money to and discuss the position with them. They may be able to help with short-term deferment of the loan or possibly allow you to pay interest only for a limited period.

Unfortunately, some lenders may not be sympathetic and even those that are might only offer help for a very short period. Very quickly the threatening letters will start to arrive followed shortly after by recovery actions.

All this could easily be avoided if you have an insurance policy in place that provides payment protection in Liverpool. These policies are designed to help those who have lost their income for reasons beyond their control. They will make your monthly repayments directly to your mortgage, credit cards and other lenders in the event you are unable to do so. This can continue until you find new income up to a maximum of 12 months (24 months in the case of some policies).

The exact details of the payments will depend upon the policy you selected but they can be up to a total of around 1500 pounds per month. That could help keep your various repayments up-to-date while you search for a new source of income. It could also help keep the roof over your head.

Payment protection insurance (PPI) may be offered to you by your credit card or other loan companies at the time you discuss your loan application with them. In fact, the insurance offered by such companies is typically several times more expensive than the same insurance offered by the specialist suppliers of payment protection insurance operating on the Internet - so it may pay you to shop around before making your decision.

All insurance that provides payment protection in Liverpool will share certain attributes that it usually pays to be aware of. Many of these relate to the fact that this insurance exists solely to provide protection against situations you have not yourself instigated. As a result, these policies will not pay out for a loss of income arising from things such as:

• Dismissals under certain circumstances
• Resignations
• Pregnancy
• Voluntary redundancy
• Career breaks / study leave / return to education.

Your payment protection policy could cover you for just redundancy or include sickness and accident cover. If you have paid for cover in the later two areas, you may also need to check carefully before you engage in medical treatment that is not medically prescribed – a good example being cosmetic surgery. A loss of income arising from complications in those types of procedures may not be covered.

Claiming against your policy is usually simple. You may have to show evidence as to why you have lost your income such as a doctor’s letter or your formal redundancy notice. To reduce the opportunities for fraudulent claiming, during the lifetime of your claim you may have to produce periodic evidence that you are still unemployed and seeking alternative income. If you are unable to work for reasons of sickness you may need to produce regular medical certificates confirming your ongoing inability to work.

If your employer has very generous sickness and accident cover then you may not need to cover those risks on your policy. This would need to be closely examined on your contract of employment.

On the contrary, it would be risky to assume that the government will help you in the specific case of your mortgage. Government help in that area is limited to part payment of a proportion of the interest on the mortgage. You would still have to find a percentage of the interest yourself and rely on the good will of your mortgage lender. The government’s help also only becomes available after 12/13 weeks by which time you may already have mortgage arrears.

All things said, it might be advisable to look at some examples of what insurance can do to provide you with good payment protection in Liverpool. It costs nothing to look!

Payment protection could ease the financial stress and anxiety associated with unemployment and incapacity. If you lose your income to either event then finding money to meet your essential repayments and outgoings could be impossible. If you have a policy to fall back onto you could you will have money coming into the home.

What exactly will the protection do?

Payment protection insurance - PPI - could be taken out in one of three forms depending on the payments you have to make each month. Your chosen policy will then provide you with an income towards being able to continue meeting your repayments or outgoings.

You will have to have been unemployed or incapacitated for a period of time before you could claim on your policy and the cover will payout for a period of time – usually 12 – 24 months - and then the benefits will cease.

When can a claim be made?

You will be able to make your claim after the deferment period had passed which depends on your chosen provider. This can be from the 30th day of you first being redundant or from you losing your income to incapacity or with some providers it might be as long as the 90th day before a claim can be made.

Some providers might offer to date back your policy to the first day of your unemployment or incapacity so you will need to check the small print to ensure you know what the cover providers.

How much benefit will I receive?

The amount of money you will get back from your policy will depend on how much you chose to insure of your mortgage, loan repayments of income.

The provider will need to agree to your chosen amount as all will set a limit on the amount you can insure up to. This agreed amount will then be paid back to you for up to the term if you needed to make a claim for that length of time.
A typical PPI policy will pay out up to £1,500 a month or half your earned monthly income, but this can vary among providers.

How long can I claim on the policy if needed?

Again this will depend on the provider you chose to take out your policy with. You could be eligible to claim on the policy for 12 months before the benefits cease with some providers. Some however might allow you to make a claim for up to 24 months so you will need to read the terms offered by any provider you are considering buying payment protection from.

Should you be offered a policy lasting 24 months then this will cost more than one paying out over 12 months.

Eligibility

You will have to check with the provider to ensure that you will be eligible to claim before you take out the policy as all providers will add in exclusions. Your provider could include just the minimum of exclusions but others could add in many more.

One of these will be that you will need to be living in the United Kingdom, the Channel Isles or the Isle of Man to be eligible to take out a protection policy.

Also, if you were to become ill and be unable to work due to a pre-existing medical condition then you might not be eligible to claim on the policy. Therefore if you suffer from any pre-existing medical condition you will have to check the terms before taking out cover.

If you are self-employed then you also will have to read the terms of cover very carefully. Generally if you are self-employed you will only be able to claim if you were to have to stop trading permanently.
You will also have to be working in a full time position and have been working for at least 6 months prior to taking out the cover.

Choosing what events to protect

The beauty of payment protection is that it can be tailor made to meet your needs. You could choose to take out payment protection to safeguard against redundancy and incapacity together. However you could also elect just to take out a policy against unemployment alone if, for example, your employer gave you a good sick pay plan.
You could consider taking out protection solely against incapacity if this were to suit your needs better. The level of events covered will determine how much you will pay for insurance.

The different forms of cover

Payment protection insurance can be taken out in the forms of loan, mortgage and income protection. Income protection will supply you with an income that you will be able to spend as you saw fit by spreading it out over many payments and outgoings.

Loan cover will provide a policy for protection of your loan repayments and mortgage protection will help you to keep up with your mortgage repayments.

Why a policy should be considered

An income from the State often falls short of the income you are used to bringing home. This means that you might not be able to spread it out over all your essential repayments. Any income given from the State towards mortgage repayments will be just for the interest of your mortgage and no money will be paid until the 13th week.
With a payment protection policy you will know how much you have each month, when you can claim and how long your payments last.

Getting the best deal

One of the best ways to get a great deal on your policy is to shop and compare cover with an independent provider. You could make savings of as much as ten times on the premiums for loan cover, four times for your loan cover and up to five times the savings for income protection.

You can also ensure that you have compared the exclusions against your lifestyle when taking the policy with the independent provider so that you know you are able to claim if the need should arise.

Summary of the main benefits

• When taking your policy with the standalone provider you make huge savings in comparison to buying cover with the lender on the high street
• You could choose the events you need protection for which helps to keep down the cost
• Peace of mind that your payment protection plan will help relieve any financial stress in the event of redundancy or incapacity.

What are you going to do for money if you are forced out of work because of involuntary redundancy, or incapacity for injury or illness? If you don’t have a plan or solution in place, you need to seriously consider the purchase of a policy. Payment protection in Northern Ireland is your best type of protection for these events as the products in this umbrella of solutions pay monthly benefits to replace lost job income. The State is sometimes expected to provide support to unemployed or incapacitated workers, but most often this does not happen. You are generally expected to get something in place for yourself and your family.

The three insurances that form payment protection in Northern Ireland and mortgage payment protection insurance, loan payment protection insurance, and income payment protection insurance. Mortgage cover helps you to meet monthly mortgage repayment requirements to preserve your home. With loan protection, you should be able to keep up with your monthly loan and credit card payment obligations. Income payment cover is a nice solution to use for making bill payments and buying other necessities. Though unique, the products all serve as protection for redundancy and potentially incapacity from injury or illness.

An overview of payment protection products

As you begin to explore the payment protection insurance - or PPI - sector, there are some common characteristics of the products that you need to become familiar with. One is the length of the benefits payout period. Some policies would pay you benefits over a 12 month timeframe, while others pay out for 24 months.

Each policy also has a specific starting point for benefits. Your policy might issue the first benefit payment 30 days after the insured event. This would be great if you are on a tight budget. Other plans don’t issue the first payment for 60 days or 90 days following the occurrence of the covered event.

Your highest level of insurance protection is 1500 Pounds or half your regular gross monthly income, whichever is less. This doesn’t replace your complete lost job income, but since payments are tax free, your net pay is fairly significant.

Your eligibility for payment protection in Northern Ireland is dependent on your employment status. If you are employed full time for at least six months, you are likely eligible for benefits. However, if you are retired, employed part time, or dealing with pre-existing medical conditions, you probably cannot collect.

Common protected events with payment protection in Northern Ireland

While involuntary redundancy is probably the most notable protection of a payment cover product, benefits for incapacity from injury or illness are also important. Most providers allow you to get a full protection that insures against both of these types of events.

Although many would benefit from a broad cover, there are some reasons why you might only get one cover or the other. Some people just want the incapacity benefits because they feel confident in their savings to get them through until they can quickly get a new job. Others only want redundancy benefits because their employer already offers benefits for health-related issues.

Carer cover is an extra protection that some providers add to their policies at no additional charge. This cover comes in very nicely if you have to leave work for a while to care for a sick or injured family member.

Look to independent insurance specialists

Independent insurance specialists have more expertise in the payment protection sector than their counterparts at financial institutions. They also have much lower premium rates. It is not uncommon to find loan payment protection for as much as ten times less cost through a specialist. Mortgage payment cover runs around four times cheaper through an independent. Income payment cover is about five times less expensive.

Why then were financial institutions so dominant in selling payment cover for years? Mostly it was because they were able to package their expensive policies with loan products and pressure unknowing consumers into buying them. This practice was a primary target of a 2005 Citizen’s Advice super complaint to the Office of Fair Trading (OFT). The OFT asked the Competition Commission to review the complaint. After the review, several recommendations were made, including a new seven day ban on the sale of payment cover to a new borrower. With the new waiting period, consumers are under less pressure to buy expensive policies from their lenders. You can now feel comfortable shopping the open market and get much better value on the purchase of payment protection in Northern Ireland.

Many people have a reasonable understanding of some of the most common types of insurance available, such as car or home cover, but some may be unaware or confused about other types of policy, such as personal financial insurance. This can be a hot topic depending on the economic climate, and can be an option for anybody who is concerned about how they would keep up with some essential commitments if they started to struggle. There are payment protection Leeds policies which actually payout support which is tax-free on a monthly basis in the event somebody loses their job income through something which was not their fault. This could be useful for anybody who would find the state benefit system or their savings inadequate in such circumstances.

This type of insurance is used by people who are working and who have considerable commitments going out of their account on a regular basis. However, somebody does not need to have something like a mortgage or rent to pay in order to get this kind of cover. People can use it to protect their income generally, or specifically to protect a certain type of loan.

Payment protection insurance (PPI) in general refers to a whole series of insurance products which are designed to work in this way. The most basic forms of pretty much all of them payout in the event that somebody becomes unable to work and then loses their income due to involuntary redundancy, injury, or illness after an accident.

After it has been activated the insurance policy provides a set tax-free cash sum on a monthly basis - not as a form of credit, but as an insurance payout - almost like a private benefits system. The cash which arrives can be used according to the type of policy, as some are meant to provide help with a specific commitment like a mortgage, while others are more general and replace a certain slice of someone’s general income.

The options are numerous but there are three common variations. Mortgage protection insurance is designed to provide cash which helps specifically with the homeloan repayments and some other costs attached to them, which may include things like home insurance and council tax. Income cover is more flexible and provides a set slice of someone’s lost income for general use, with cash able to be spread around whatever the policyholder chooses.

There’s also loan cover, which can protect repayments on a specific debt, in a similar way to mortgage protection. All cover policies have limits to them and one of the first ones to bear in mind is that deals will only provide a certain amount per month after a claim has been approved, and firms employ strict limits - as an example it could be no more than £1,500 per month or up to half of someone’s current monthly salary, whichever is less.

In some cases someone will be able to stay within these limits and get a deal which protects more than enough for them to cover one or more commitments, but some, perhaps those on a large mortgage, may find they can’t protect all of the commitment, but at least a good slice of it.

Something else to mention is that the deal does not always payout straight away after someone has claimed successfully, and nearly all insurance companies put a kind of exclusion zone on their deals. This means somebody may have to wait 30 to 90 days for a first payout, depending on the policy, although some companies will backdate their payments to the day somebody actually lost their income.

Getting payment protection in Leeds is easy, as once someone has an idea of what it is they might need, they can try the internet, the telephone, and even go through an insurance broker. Some people may already have cover because they have been sold it directly in conjunction with a loan from a bank or lender, although this may not be the best value. People who have ended up with a deal like this may find that they are paying more than if they had gone with a standalone independent insurance company. Those who are shopping around for the first time may want to ignore any offer of protection they may get from their bank or lender, and look elsewhere at independent sources.

Payment protection for Leeds consumers will of course mean another insurance premium, but in the long run it could prove good value as falling behind with a debt of any kind can pose a threat to someone’s credit rating and even their home in the case of mortgages and some other loans.

The number of people that are knowledgeable about the payment protection insurance sector is not large, but it is growing. In light of recent events that have brought this portfolio of insurance products to the forefront, more and more consumers are learning about opportunities to get a good deal in the open market. This portfolio of insurance solution includes mortgage payment cover, loan payment cover, and income payment cover.

So, what does payment protection do? Essentially, the three products that make up this sector serve a similar purpose. They provide your best chance for financial security during involuntary redundancy, accident or illness. The State offers little assistance and to very few people during unemployment. You must take it upon yourself to protect your family. This sector of insurance solutions offers you the change to get a monthly benefit payment that replaces your lost job income for the length of the plan.

Though very similar, there are some moderate differences between the three products. Mortgage payment cover is designed as a benefit to allow you to manage monthly mortgage repayments in order to preserve your home. Loan protection is useful with personal loan and credit card debt management. Income payment cover is a more general purpose benefit to use in keeping up with various financial needs.

An overview of the payment protection policy

Along with understand the basic industry and products available, to get a good deal on payment cover, you must understand key terms that affect performance. The first issue to address is whether you are eligible to collect benefits from a payment insurance policy. Eligibility requires that you are employed full time for a period of at least six months. Part employees, retired people, and people with pre-existing medical conditions are all ineligible to collect benefits under the terms of the plans.

Once you determine you are eligible to get benefits, you need to also consider the length of the payout period for various products. Some payment protection insurance (PPI) policies pay benefits over the course of a 12 month period, while others pay out for a length of 24 months. Obviously, you want to know how long your benefits last.

Another pertinent factor to address is the benefits starting point. Some policies begin to pay benefits only 30 days after the insured event. For many, this is the best case scenario because it removes the potential for a big gap between your last job pay cheque and the first benefits payment. There are plans that begin to payout 60 days or 90 days after the event. This might work well for those people that have other income or good savings.

The maximum allowable cover under most payment insurance policies is typically £1500 or half the normal monthly gross income from your job, whichever is lower. The benefits are tax free so your net pay is more than it would be if it were a basic job pay cheque. Some people opt to take out a lower amount to save on premiums. This is not advisable unless you are in good financial position to take care of yourself.

Various levels of cover

There are payment protection policies that allow you to protect against involuntary redundancy, accident and illness in the same plan. You can also elect to buy a plan that protects either involuntary redundancy or accident and illness. The most complete protection comes with both, but there are sometimes good reasons to just take on one cover as opposed to both.

People that have good accident and illness protection through their employer probably would not want to take on this protection on their own. Some people that do want the accident and illness cover might decide they have less use for the redundancy and decide to save on premiums. This is only sensible if you have savings or severance pay, or you are very confident you would quickly find new work.

Carer cover is an extra benefit that many providers include in their payment cover plans at no additional charge. This benefit pays the monthly payments when you are forced to leave work to care for a sick or injured family member. It is a nice extra to have in your protection should the need arise to leave work to manage your loved one’s care.

Getting a great deal on payment protection

Payment cover can generally be purchased from financial institutions or independent insurance specialists. Financial institutions are broad financial banks that sell a variety of finance related products. Insurance specialists are focused on the sale of insurance products and are thus more knowledgeable about the payment cover products. This expertise along with good service and support are an advantage for the independent insurance provider.

Another advantage for independent specialists is cost. Whereas plans from banks can be quite expensive, those purchased from independent companies are much more affordable. Loan payment cover is often around 10 times less expensive through an independent. Mortgage payment insurance is around 4 times less expensive. Income payment cover is 5 times cheaper.

Fortunately, now that consumer awareness is growing, more people are recognizing the better deals offered by independent insurance specialists. This was not always the case. Large banks long dominated the payment cover sector by selling their expensive plans to unknowing customers. This was often done by bundling the insurance with a loan product such as a mortgage or personal loan. Consumers would feel compelled to by policies from the lender. Some lenders would deceive the borrower into taking on their protection by building the insurance into the loan repayment.

In 2005, Citizen’s Advice, a leading consumer advocate group, filed a super complaint with the Office of Fair Trading (OFT) that was eventually referred to the Competition Commission. The Commission has since issued several recommendations for improvements in payment protection. One notable change puts a seven day waiting period on lenders before they can sell the borrower payment cover. At the same time, in 2007, the Financial Services Authority (FSA) fined many high street companies that were mis-selling policies to ineligible consumers. These actions have helped clean up the sector, meaning you can comprehensive protection at a price that suits your budget.