Payment protection insurance - or PPI for short - can be taken out for your loan, mortgage and essential repayments. Any of these forms of protection can be taken to cover the possibility of unemployment and incapacity. You can then claim on the insurance of your choice if you suffered from one of these events and you would have an income coming into the home towards being able to maintain your chosen repayments and outgoings.
When applying for your policy you choose the amount of your repayments you want to protect or your income. This amount is then paid back to you each month should a claim have to be made once you had suffered one of the events for a period of time. With some providers this might be 30 days and with others it could be up to the 90th day before you can claim. Once a claim has been made you would then be able to continue to claim up to the 12th month with some providers and others it could be as long as the 24th month you might receive your benefits.
Loan cover would allow you to continue servicing repayments for a secured or unsecured loan. This could stop you from falling into arrears with your repayments and being faced with the possibility of the lender taking you to court. Should you have mortgage repayments that need maintaining then you could look into taking out mortgage payment protection. The policy provides a sum of money that would go towards you keeping your mortgage repayments up to date and could stop arrears which might lead to you losing your home. Income payment protection might be taken if you want an income to replace some of your own which would go towards any essential repayments you might have.
You can take out payment protection insurance to cover both events and claim if you suffer either. Or you could take out a policy that would payout solely in the event that you were made redundant or just to cover the possibility of becoming a victim to accident or illness. What events you choose to cover goes towards how much you would pay for your policy. Your provider, should they be generous, might also give you carer cover in with your protection. If so you would have an income if you were to have to stop at home and give up working to take care of a family member. However not all do so you really have to check in the small print of any protection you are considering taking out to find out if yours will.
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