Income Payment Protection
It isn’t surprising that some people worry when considering buying income protection. Media coverage about customers being sold PPI improperly hasn’t helped; consequently four out of five people in the UK do not have Payment Protection Insurance. Many consumers are wary when it comes to paying out for a monthly premium; however this could be one of the most important decisions you make
What is Income Protection?
Income Protection, also known as Accident, Sickness and Unemployment (ASU) cover Payment – is a policy that pays you tax-free monthly payments if you lose your income due to redundancy, accident or sickness. This policy is also known as Protection Insurance – (often referred to simply as PPI)
There are state benefits to help you, but the new government have announced changes to how they assess customers. You would have to undertake a work capability assessment to decide whether you receive the benefit. Over 1 million claims are turned down each for incapacity benefit – this is likely to increase when the new measures for assessment are introduced in 2011.
More and more people are turning to Income Protection Insurance so, if the unexpected happens – a car accident or sudden illness, for example – you can be assured that Payment Protection Insurance will cover not only your mortgage repayments, but even council tax and utility bills.
March 06 2011 | A Brief Glance At Unemployment Covers | Comments Off