Income loss through such as accident sickness unemployment brings all kinds of financial problems. In the worst case you could lose your home if you cannot come to an agreement with the lender to catch up on what you owe while continuing to pay your mortgage. If you have loans that you cannot keep up then you could be taken to court and have bailiffs come to the home to take your possessions. In all cases your credit rating would be affected and this means borrowing in the future could be very hard. Accident sickness unemployment insurance can be taken out to safeguard against a loss of income and it makes life a lot easier.
You are able to take out an accident sickness unemployment insurance policy for your needs. You can choose to take mortgage cover, loan and credit cards insurance or insure you income with income payment protection. All policies would work in the same way, you would have to be unable to work or unemployed for a fixed amount of time. Providers usually offer policies that would payout after a period of between the 30th day and up to day 90. Some would backdate the payment to the first day of you being made redundant or of becoming incapacitated. After commencement you would have a period of time in which to find work or recover and get back to work. This is usually either a 12 monthly policy or 24 payments, at one each month.
Of course your biggest worry would be your mortgage. Failing to keep up with the mortgage could mean that the lender would take you to court and you could lose your home to repossession. With mortgage payment protection you would not have this worry as you would be able to pay on time without a problem.
If loan repayments have to be met each month then loan payment protection could be taken. This would allow you to meet them and so not earn a bad credit rating. Your credit rating is essential as all lender look at it when deciding whether to give you a loan or not. A bad rating could mean you pay higher rates of interest, even if you are approved.
Income payment protection would cover all you essential outgoings as you insure up to a certain amount of your own income each month. With the money you received you would be able to pay your mortgage, loan repayments and all other household bills each month.
All forms of accident sickness unemployment insurance are cheaper when taken out with a standalone provider. A standalone provider would charge premiums which are based on the amount you wish to protect each month and your age. In the case of mortgage payment protection the level of cover would also be taken into account. You could take out protection against accident sickness and unemployment together. However you can also just take unemployment cover or just incapacity cover if this is what you need. As the policy would be based on your age when applying the younger you choose to take out insurance, the cheaper the policy would become.
Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of accident sickness unemployment insurance. |
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