There are three types of payment protection that you could give some thought to when considering the protection. Loan payment insurance can be taken to cover a percentage of your loan outgoings. Mortgage cover could be taken to insure your mortgage repayments and income cover would supply you with an income that you could use as you wanted towards any essential repayments.

How much you would get back towards your chosen repayments would depend on the amount that you chose to protect. This amount would have to be pre-agreed by the provider as all will set a limit as to the maximum amount you could protect. The income insured is the tax free sum of money that you would get back if you were to have to put a claim in due to one of the events you wanted to protect.

All forms of payment protection can be taken out to cover redundancy and incapacity together, for redundancy alone or for incapacity alone. The events chosen to protect would reflect on how much you would have to pay for your policy. You could check to find out if your provider offered carer cover in the protection as a generous provider will. If yours does then you would be eligible to claim an income in the event that a close family member should become a victim to incapacity.

When considering any type of policy you would have to be aware that there are always some exclusions in any policy and you would have to check these against your circumstances before you take on the cover. For instance you have to be working in a full time position in order to be eligible to claim. You would also have to have been working full time for at least 6 months before you applied for your policy. Some providers might include just the most common while others could add in many exclusions. An ethical provider would supply you with the income needed to check the exclusions against your circumstances.

You could consider payment protection as your lifeline as opposed to trying to claim an income from the State. First you would need to be eligible to claim an income from the State and this would mean you not having savings which are over a certain amount. If you are eligible to claim an income then the money you are entitled to receive could fall short of your income which could leave you struggling to find the money to continue servicing your repayments and outgoings. If you claimed an income towards your mortgage repayments then you would only be eligible to claim money towards the interest part of the payment. You would also not see any money until several weeks.

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