Income protection and mortgage payment insurance can both be taken with an independent payment protection specialist for a lot less than from a high street bank of lender. You can choose which policy would be the most suitable for your needs and then insure a pre-agreed amount of your income or mortgage repayment and receive this back as a sum of money tax-free each month.
You would have to wait for a period of time before taking out income protection and mortgage payment insurance and with ethical specialist payment protection provider British Insurance this would be from the 30th day of you being unemployed by redundancy or from being incapacitated due to accident or sickness. The sum of money you received back would go a long way towards you being able to maintain the repayments of your mortgage or your essential outgoings depending on the policy you chose.
You would then have 12-24 months of protection on which to rely and during this time you would be able to look for work or make a recovery. You would have to check the terms and conditions of any policy you are considering taking out before actually buying it as some providers could ask that you wait for up to 90 days before making a claim. You also need to check for how long the protection would pay as some providers could extend this up to 24 months.
Income protection would allow you peace of mind that you would have some money towards being able to service all of the essential outgoings that came into the home each month. You would not have to make lifestyle changes or have to make cutbacks which could affect the whole family. You would be able to use the money towards whatever bills came into the home.
Mortgage payment insurance would go a long way towards ensuring that you did not fall into mortgage arrears. If you were to fall behind on your mortgage you would be at risk of the lender choosing to take possession of your home. With a policy behind you this would not happen. Mortgage arrears of just a couple of months would be enough for the lender to begin court proceedings to repossess your home and this could lead to you being evicted.
Both income protection and mortgage payment insurance would come with exclusions which you would have to check to ensure eligibility. If you choose ethical payment protection specialist British Insurance then you will be provided with this information on their website. You could then check the exclusions against your circumstances and you would immediately know if the cover would be suitable as a back up plan.
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