This is one of the first questions that you would have to ask yourself when considering taking out payment protection. This would depend on whether your main cause of worry was your mortgage repayments, your loan repayments or your general outgoings. Whichever form of insurance you decide to take out you can shop around for the premiums with standalone providers. This is generally one of the cheapest ways of taking out a policy and often it can work out much cheaper than when taking cover with the lender on the high street.

Once you have decided on the best type of payment protection insurance for your needs you then have to work out how much of your repayments or income you want to cover. This would be limited by your provider and so would have to be agreed by them as it is the amount of income that you would get back if you were to have to claim on the insurance due to suffering one of the events insured against. This income would be paid by the provider tax free over a period of time once the deferment period had passed. Usually this would be in the region of 30 to 90 days with some providers paying out on your policy for 12 months and with others it could be up to the 24th month.

You would have to check the terms of any policy you were considering as there are always exclusions which have to be checked against your lifestyle. Usually the provider would give you this information on their website so you can compare them.
You also have to decide what events you want to cover. You might choose to take protection against unemployment and incapacity together in the same policy. You could however just choose to take protection against redundancy alone or incapacity alone. Your provider might also give you carer cover in your policy. This means that you could make a claim on your policy if one of your close family members fell ill or suffered an accident. You would have the income from your policy and be able to care for them without worries of falling into debt or arrears with your repayments.

You could choose to take out mortgage payment protection if you have mortgage repayments that need maintaining each month. Mortgage repayments have to be maintained if you do not want the threat and worry of repossession hanging over your head.

Loan cover could be taken to provide you with an income that could be used towards you being able to service your loan repayments each month. If you fall into debt with your repayments on a secured loan you could lose the property that you secured on the loan. You can even be taken to court and have your possessions taken if you fell behind on your unsecured loan repayments and were unable to catch up on them. Income cover would make life easier when it came to outgoings such as your rent, your utility bills and even the family grocery bill for the month.

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