While none of us like to be pessimistic, the truth is, none of us are infallible and at any moment in time, we could become unable to work and be without an income. And this is where income mortgage protection can help, by providing a tax free monthly sum that will help replace your lost earnings in the event of accident, sickness or involuntary redundancy.
Income mortgage protection can be taken out that, should you were to be made unemployed you would still have an income. It can also be taken to protect against the likelihood that you might suffer an illness or accident that left you unable to work for a period of time. Cover can also be taken to protect against all three possibilities. The premium would be based on the level and type of cover needed and, once the policy started, you would receive a monthly tax free amount to help towards your essential outgoings.
You might think that this insurance is just another expense you can ill afford and that, should you become unable to work, you have enough saved to cover your mortgage repayments for a couple of months. However, this type of reasoning is why so many consumers fall in to arrears with their mortgage or other credit commitments.
Relying on the State and any benefits it will provide can be a letdown. Any financial assistance given – if you are eligible to claim at all – will often be very little and will still leave you struggling financially.
Mortgage payment protection insurance (also known as MPPI) will help towards your monthly mortgage repayments should you become unable to work, as well as associated costs such as building insurance. Mortgage payment insurance will cover up to a certain amount of what, for many people, is the single biggest monthly outlay.
Income payment protection insurance will provide a monthly sum that you can use to meet your essential costs whether it be rent, utilities or even petrol!
These payment protection insurance policies do come with a waiting period before you can make a claim. Typically this will be anything between day 30 and 90 after the event. Look out for insurance companies who will backdate your claim to the first day, such as standalone specialist British Insurance.
Income mortgage protection insurance can provide a financial lifeline and in a world where nothing is certain, this is essential.
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