Protect your income against Unemployment Accident and Sickness for 12 months
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Protect your income against Unemployment Accident and Sickness for 12 months |
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Income Protection |
Unemployment Insurance |
Redundancy Insurance |
Accident Insurance |
Sickness Insurance |
Mortgage Payment Protection |
| Many people are concerned about what would happen to them if they were made redundant. Most people are unaware that redundancy insurance is an option. Almost everybody can apply for a redundancy insurance policy no matter what their employment circumstances. When you purchase a redundancy insurance policy you are protected should your employer decide to make you redundant, as long as you do not take voluntary redundancy. Each policy will have its own terms and conditions and we therefore recommend that you read the policy document in full before buying any redundancy insurance policy. While this type of insurance is mainly aimed at the employed the self employed can also purchase a redundancy insurance policy, the conditions for claiming are naturally more stringent, but it is possible for the self employed to claim. Many people make the mistake of waiting until they feel redundancy is likely before buying a policy, however the insurer will put conditions in place to protect themselves from people who buy a redundancy insurance policy when they know they are going to be made redundant. Our view is, if you are concerned about redundancy the best time to but a redundancy insurance policy is now. |
You can insure yourself against losing your job by purchasing an unemployment insurance policy. The vast majority of these policies are bought to protect a mortgage and typically they will also include accident and sickness cover. These policies are more commonly known as mortgage payment protection polices or ASU which stands for accident, sickness and unemployment insurance. The unemployment element of the policy is designed to protect you if you lose your job through no means of your own. Obviously examples would be redundancy or company relocation. If you were dismissed for gross miss-conduct then your unemployment insurance policy is unlikely to pay out. These polices are aimed at giving you peace of mind when you are in work and perhaps more importantly when you are out of work. When times are hard and people are concerned about their future an unemployment insurance policy at least allows you to know that your major financial commitments such as your mortgage are taken case of. If you are unfortunate enough to lose your job financial pressures could result in you having to take employment in a field where you have little or no expertise. If you are receiving benefit from an unemployment insurance policy that immediate financial pressure is removed and you can focus your efforts at finding employment in your chosen career. |
| A mortgage is one of the biggest financial commitments you may ever make. You promise to make regular monthly payments to your mortgage lender for a number of years, typically 25 years. Are you certain you can make all the payments ? If not then mortgage payment protection is something you should consider. If you were unfortunate enough to lose your job or if you suffered an accident or illness then you may not be able to make your monthly mortgage payments. This could lead to arrears and other problems with your mortgage lender. A mortgage payment protection insurance policy looks to pay your monthly mortgage payment if accident sickness or unemployment prevent you from working, They will typically pay your mortgage for up to 12 months, for many people this could make the difference between having their property repossessed or keeping their home. If you have a longer term illness then mortgage payment protection will not keep on paying your mortgage for ever, but by taking care of the important first year you can start to make plans for the future without the pressure of a mortgage lender making constant demands. The premiums for mortgage payment protection are relatively cheap especially when compared to the financial loss you could face. You may feel that given your circumstances accident and sickness insurance is not necessary or unemployment insurance is irrelevant. The latter is particularly true for the self employed. The good news is that when you buy your policy you do not have to purchase those elements that you think necessary. This means that your mortgage payment protection policy could cover accident and sickness only or you could have a policy that only covered unemployment. It costs nothing to ask, at Platinum we are more than happy to answer any questions you have relating to mortgage payment protection. We will explain the policy if full and provide you with quotes without any obligation. |
| All of the product types above could also be considered to be income protection insurance. As we have stated in several places throughout this website there are a number of policies that are all provide a different type of cover or benefit, however the typical customer would nevertheless call them all income protection. Most mortgage payment protection insurance is also inked to your income, therefore it is a form of income protection even though it is technically called mortgage payment protection. This means that a mortgage payment protection policy may be your best first call if income protection is a major requirement for you. The product on this website (as at 4th February 2009) is not linked to mortgage or rent nor any other expenditure the only thing you will need to prove is your income. This makes it a pure income protection policy and one of the few that will allow you to insure against unemployment only. These policies should be considered short term solutions as the benefit will only pay out for typically 12 months. Their aim is to offer you short term income protection while you either find new employment or recover from a short illness. In the case of illness if you suffer a condition that means you are unable to work for more than a year, the benefit will stop after 12 months. It is possible to but an income protection policy that will pay out until your normal retirement date, however they will only cover accident and sickness. It is not possible to buy a long term income protection policy, i,e, more than 12 months, to cover unemployment and redundancy. For most people some form of income protection should be an essential insurance purchase. You would not think twice about insuring your home, life even a car. Why then shouldn't you insure the one thing that will allow you to pay for all of these things, you income. Income protection insurance will allow you to do just that. |
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