If you take cover with an independent provider you have choices for your payment protection plan. You would be able to choose the amount of your repayments or income you wanted to protect and you would also be able to choose the level of protection needed.
The amount you choose to take out is agreed by the provider and it would be the income that is paid back to you each month, tax free, up to the term defined by the provider. You would need to be unemployed or incapacitated for a period of between 30 and 90 days before you are able to make a claim on the policy, with some providers dating back to the first day of you suffering your incapacity or unemployment. Some providers will offer you 12 months of cover and others could offer 24 months, so you would have to check in the small print before taking on the protection. Once the term had been reached the protection would cease regardless of whether you had found work or had made a recovery from your illness.
If you want the freedom of having an income which could be used towards maintaining any repayments then give some thought to taking out a mortgage payment protection plan. You could use the income to meet your utility bills, your rent, and your monthly food bill or spread it around as needed. Income cover is the most flexible of the three forms of payment protection.
If your mortgage repayments were your biggest worry then look into taking out mortgage payment protection. The substantial sum of money from this policy would go towards you being able service your mortgage repayments each month which could stop you from falling into mortgage arrears. Mortgage arrears which you are unable to catch up on could lead to the lender taking you to court and you could lose your home. If this happens you would have to leave behind all the memories that you have built up in your home over the years.
Loan payment cover could suit your lifestyle better. The income from your policy would go a long way towards you being able to maintain your repayments and this is essential if you have taken out a secured loan on your home. If this is the case and you fall behind on your repayments with no chance of catching up then your home could be repossessed. Unsecured loan debts can also mean you being taken to court by the lender. In this case then would try to get back the money that is owed and this could mean that bailiffs come into your home and seize your possessions to sell. A policy could help to avoid any of these worries.
You could just want to take a payment protection plan against the possibility of losing your income to either unemployment or incapacity and claim on the protection if you suffered from either event. However you might not need this and therefore you could just tailor the policy for unemployment alone or incapacity alone if this suited your circumstances better.
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