Income Protection
In the complex world of financial services we try to cut through the jargon to help
you decide the products you need most.
Income protection is crucially important when mapping out how to look after your
affairs.
Just think.
How would you cope if you couldn't work through sickness, accident or redundancy?
It's more common than you think.
Two million people in the UK aged 20- 64 have been off work for a period of more
than six months for various reasons.
So, income protection insurance also known as ASU cover or payment protection insurance
also called PPI is very relevant.
Basically, there are two ways of securing this kind of protection.
One method is through ASU - Accident, Sickness and Unemployment cover
This specialises in looking after your short-term interests if you can't work.
Online Quotation
The other method is called PHI Cover -
Permanent Health Insurance
This takes into account your situation if you can't work for longer periods of time.
So, each is different. But both offer excellent benefits.
Many people think it is a good idea to have both types of cover to help you in either
short or longer term difficulties.
Some say it's a waste of money
But if you fall ill, suffer an accident or are made unemployed, income protection
can provide vital cover for you to look after yourself and your family.
Here's how this kind of cover can help you.
When you take out a loan it's crucial you make all the repayments in full, and on
time. If you don't, you could lose your home if it's a mortgage or if your loan
is secured on your home. Sometimes the unexpected happens. You might lose your job
through redundancy or find yourself unable to work after an accident or due to long–term
sickness. By law, an employer must pay most workers statutory sick pay for up to
28 weeks. This will probably be a lot less than full earnings. After that, you would
probably have to fall back on State benefits. These are limited and means-tested
which could mean you won't qualify. If you are self-employed, you have no employer
to help, so you would have to turn to the State. This is when insurance to protect
you or your family's income or borrowing can be useful.
Here are some products you might find useful:
Mortgage Payment Protection Insurance (MPPI)
This is now very popular in the UK. It ensures that your monthly mortgage payments
are made if you become unemployed.
Unemployment can be caused by accident, sickness or redundancy.
Benefit is usually paid for up to either 12 or 24 months - normally sufficient time
for the claimant to regain employment.
Payment protection insurance (PPI)
PPI is taken out against the payment of a specific debt - for example on a loan
or credit/store cards or catalogue payments It covers repayments if the borrower
loses income due to redundancy, illness or accident.
A typical policy will start to pay an agreed amount one month after your income
stops and continue to pay for a set time – usually 12 or 24 months. If your earnings
stop for a reason that is covered by the policy, you can claim.
Call us on 0845 123 7588 or contact us online, and we will
tell you exactly how to make the most of the products you have available. Or inquire
online and we'll call you back at a convenient time. Not yet registered for HolidayMiles?
Click
here to register Barrhead Travel Financial Services are independent financial
advisers.
You can also earn Holiday Miles when you take income protection with Barrhead Travel
Financial Services, buying products you need from our carefully vetted suppliers.
We are fully protected and are regulated by the Financial Service Authority.