One way of being able to stop yourself getting into arrears or falling into debt if you lose your income is to take out redundancy protection. This policy will provide a monthly cash sum in the event that you become involuntarily unemployed for up to 12-24 months’ depending on the provider. Becoming unemployed because of misconduct or where you resign would not be covered by this insurance.
There are three key products that offer redundancy protection - loan payment protection insurance; mortgage payment protection insurance (MPPI) and, income payment protection insurance. For a further premium you can also protect against becoming unable to attend work due to recovering from an accident or suffering from sickness.
You could take protection for your mortgage by way of mortgage payment protection cover. Mortgage payment protection would help towards meeting your mortgage payments so you are not facing arrears and the possibility of home repossession. Or you could choose loan payment protection if you have loan payments. The insurance would mean that you would not get into debt and be taken to Court by the lender.
Income payment protection can be taken out if you want to protect your income in general. You could insure a certain amount set out by the provider. Insuring your income in general means that you would have the money to be able to meet the bulk of the bills that come into the home on a regular basis. This could include your loan and mortgage repayments.
Taking out protection does not have to cost a fortune if you choose to look around for a policy with an independent payment protection specialist. British Insurance is one such provider who offers low cost payment protection insurance solutions. Such a provider would offer protection against unemployment that can save you as much as 40% on mortgage payment protection and 80% on loan payment protection. They would also ensure that you have all the advice that you need to make the right decision regarding which type of redundancy protection you choose and to check the exclusions against your circumstances. Once you have done this then cover would act as your safety net.
All types of redundancy protection would pay from 30 days after the event with British Insurance and they would also backdate your benefit to the first day. Once you had started to claim on the policy it would then continue to provide you that income for up to as long as 12 months.
Related Posts