Knowing that you have something behind you to fall back onto should you lose your income to unemployment or incapacity is a Godsend. If you were to fall behind on mortgage repayments then you risk losing your home to the lender. Secured loan repayments that you cannot maintain can also lead to repossession or in the case of unsecured loan repayments that cannot be serviced; you could lose possessions to repossession by bailiffs. If you are unable to maintain your utility bills then you could lose your services or be unable to put food on the table for your family. All of these could be protected with payment insurance to give you peace of mind during a time when you need it the most while you search for work or recover.

Once you have chosen from mortgage, loan or income payment insurance you then have to decide how much of your monthly income, loan or mortgage repayments you want to protect. This amount is pre-agreed with your provider and is the amount of income you would have towards maintaining your chosen repayments. The income would be paid once you have been unemployed or incapacitated for a period of time which is generally in the region of between 30 and 90 days. Once payments have begun you can then look forward to receiving one each month for either 12 months or 24 months depending on the provider of your choice. This can provide you with time to search round and find work or to have made a recovery and got back to work, however your payments would stop regardless after this time.

With the independent payment protection provider you can choose what you want to protect against. You can choose full payment security of unemployment and incapacity. However you might just want to take out cover to safeguard against the possibility of losing your income to unemployment alone or incapacity alone depending on your circumstances.

If you have mortgage payments to service then you could want to consider mortgage payment protection as security. The substantial sum of money from this policy would go towards you being able to maintain your repayments for the policies term. This could help you to avoid falling into mortgage arrears which could lead to your losing your home eventually to repossession if you are unable to catch up on the missed payments. Loan cover would provide you with money that could ensure you do not fall behind on your repayments and risk being taken to court. If this were to happen then you could lose your belongings to seizure by bailiffs. You might also lose your home if you have secured it on the loan. Income payment insurance would allow you a sum of money that could be used towards servicing any essential outgoings that should come your way.

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• Income mortgage protection to protect the roof over your head
• Do you have payment protection insurance to help you financially?