Payment protection comes in three types and of course the most suitable from of cover would depend on what you have to pay out each month. You would be able to choose from between loan, mortgage or income cover and protect against unemployment and incapacity in one policy. You could then make your claim if you should suffer from either event and receive the benefit that you chose to protect and which your provider agreed with at the time of you taking it out.
Any of the forms of payment protection can be taken by searching around and comparing the premiums. Usually you would make great savings on the cost of your chosen form of protection when compared to taking out the policy with the lender on the high street. Your chosen amount of benefit would be paid as tax free income after you had been redundant or incapacitated for a certain amount of time. This may be between days 30 and up to as long as the 90th. Your benefits could continue for up to the 12 month if they were needed or some providers might continue to supply you with your income for as long as the 24th month should you remain unemployed or incapacitated for this length of time.
You can also choose to take out the policy to suit your lifestyle if you did not want to cover both unemployment and incapacity in the same policy. For instance you could just want to cover redundancy in the event that your employer paid generous sick pay. You might alternatively choose just to take out incapacity protection if you thought you have enough savings to get by on while you searched for another job. You could also make a claim on your policy for carer cover if you have chosen a generous provider. This means you could put in a claim and begin to receive your chosen income if you were to have to stop working due to taking care of a family member who suffered incapacity.
Payment protection will have at least the most common of exclusions in the small print so you would need to check these against your personal lifestyle. Some providers could also include many more than others so compare this too. Usually you would need to be working in a full time position and have to be working for a period of 6 months at the time of taking out your policy. You would also need to reside in the United Kingdom, Isle of Man or the Channel Isles to be eligible to make a claim.
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