A lot of us will at some point in our lives be unable to work. Though for a few this will simply be an inability to find employment, for many it will be as a result of illness, injury or unexpected redundancy. When such a situation strikes, it can be easy to panic; unsure of where your next paycheque will come from or how you will meet the next lot of bills, but there are a number of ways you can cushion the blow and keep yourself afloat during just such a predicament.
Short Term Income Protection
This is a specific kind of policy that will cover you for a specified amount of time out of work, usually somewhere around 12 months. The actual terms can differ but generally it will cover illness, injury and unemployment, so long as the threat of unemployment and existing medical conditions were not present when you took out the cover. You will often have to be out of work for a minimum period of time (30 days on average) before the payments will start but in some cases this will be backdated.
Long Term Income Protection
The main difference between short and long term protection is that with this kind of policy, you can specify the date you want the cover to end, which is often the date of intended retirement, when you will gain access to your pension, or the date at which your mortgage payments will end. It will also usually not cover you for unemployment, focussing instead on injury or illness. As always, there are many different layers of protection and specific perks available and cover is often tailored to each individual.
In some cases, the accident that incapacitated you will be through no fault of your own and you could be entitled to claim compensation to help cover medical costs and tide you over until such a time when you can return to work. It can be a daunting prospect taking on a large company, perhaps even your own employer, but if you feel you have been wronged, organisations like LeoClaims can assist you in your efforts to seek reward for your inconvenience.
Mortgage Payment Protection
This does exactly as the name implies and covers your mortgage repayments. This can be very useful, considering that for many, their mortgage is the most substantial and important of all their monthly bills. It is worth remembering that the payments will be made to you, not your lender, so the responsibility to make the payments on time still lies in your hands.
Payment Protection Insurance has been tethered with a bad name and with the repayment scandal still on going all these years later, you would be forgiven for thinking it wise to avoid such a scheme at all costs. The truth is that the initial issue was the fault of providers, not the policies themselves. PPI is designed to help cover payments on your loans or credit cards and remains a valid option to do so. Uproar only surfaced as a result of companies