You need to take many factors into account when looking into an income protection quote. One of the first is what the policy offers and this information can be found in the terms of the policy which should be listed on the payment protection provider's website. This information will include such things as the exclusions, when payment would begin and when it would end. The cover that all providers offer will differ in all aspects and checking the exclusions and comparing them against your circumstances is essential if you are to ensure that you would be able to benefit.
After you have checked the exclusions and know that a policy is suitable you can then turn your attention to the cost. This also differs between providers and it can be by quite a lot. You also need to find out if the provider would backdate the policy to the first day of you becoming unemployed or of being incapacitated. You can then turn your attention to when you would be able to put in a claim. With some providers this would be from the 30th day of unemployment or incapacity, with others you could have to wait as long as the 90th day. Some will pay you an income each month for up to 12 months at the most; other providers could offer a payment each month for 24.
Income protection would be there for you to fall back on if you found that you were unable to work after suffering from an accident or illness. It would also protect you if you were to become unemployed through no reason of your own such as by redundancy. With a policy you would not have to make any drastic changes to your lifestyle to be able to find the money needed to keep up with all your outgoings each month. One of the biggest worries at a time when you did not have an income would be how to continue paying your mortgage repayments. If you get behind on your payments then you are risking losing everything as the lender could choose to take you to court and repossess your home. Even by missing just one of the payments you will have a bad mark against your credit file and this can affect borrowing in the future and can take a long time to repair. By getting a cheap income protection quote from an independent provider you could avoid all of this.
When looking for an income protection quote you do need to make sure that you are looking for the right policy for your needs as there is also income protection insurance. This is a similar policy that covers your income against the possibility that you could be unable to work after becoming sick or suffering an accident. It would not provide cover against unemployment by redundancy. This type of protection would pay up to the age of retirement after waiting a longer period to claim on the cover. Whichever policy you are considering taking out you do have to read the terms and conditions of the cover very carefully to be sure of being eligible to claim.
Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of income protection quote. |
No comments:
Post a Comment