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[A165]Accident Sickness Redundancy Insurance

by Simon Burgess, Sim

Accident sickness redundancy insurance is often pushed by the lender on the high street onto those who take out borrowings with them. In some cases the cover is added in without the consumer really being aware of what they are buying. It can also be added into the loan and then the interest is added on top and in some cases this boost the loan up by almost half as much again.

Accident sickness redundancy insurance is an umbrella term for mortgage, loan and income payment protection. All three policies are taken out for a fixed sum each month which is called the premium and how much this is depends on the provider, how much you want to cover and age. The younger you are when applying means the cheaper you will get the policy and this means that first time home buyers who have stretched their budget to the limit can now afford to protect the roof over their head.

If you have mortgage repayments to keep up with then consider protecting them with mortgage payment protection. By paying out an affordable premium each month you would have the peace of mind that if you were to become unemployed or incapacitated you would not be at risk of getting into arrears. By getting into arrears you are at risk of the lender taking you to court and repossessing your home. As you do not want to have this worry on your shoulders while making a recovery or looking for work, then protection is essential.

If loan or credit card repayments are a worry then you could consider taking out loan payment protection. For a premium you are able to insure the repayments up to a certain amount each month and then continue to pay them with the benefit from the policy. You would not earn yourself a bad mark on your credit rating and you would not be at risk of the lender taking you to court to claim back what you owe through your possessions.

If you want to insure your mortgage, loan and credit card repayments along with your other essential outgoings then you should give income payment protection some consideration. By taking out this cover you would be able to pay them all without having to worry about finding the money or having to put bills off to later date and risk them piling up.

All forms of accident sickness redundancy insurance would begin to provide for up between the 30th and 90th day of continuous unemployment or incapacity. Some providers will also state in their terms and conditions that they will back date to the first day of your unemployment or incapacity but you do have to check as all might not. Once the protection has started to payout then it would continue to do so for a number of months before expiring. Usually providers will offer either a 12 month or 24 month policy. To ensure that you would be able to benefit from a policy you need to check the exclusions against your circumstances.

When it comes to any matter to do with your finances it is essential that you arm yourself with as much information as you can. If you have taken on a loan or any form of credit then it is in your best interests to protect the monthly repayments in case you should be made redundant, or come out of work due to an accident or long term sickness. The best way of protecting yourself this way is to take out redundancy insurance and the best way to get the cheapest premium for the policy is by going to a standalone provider.

Redundancy insurance - or payment protection insurance as the cover is also known as - will provide you with a predetermined sum of money each month if you should find yourself unable to work for a period of time. It will generally continue to pay out for a period of up to 12 months, though with some policies it will pay for up to 24 months.

However when taking out the insurance it is imperative that you know what you are buying and what is covered and not covered by the policy. There are many things to consider before jumping in and buying a policy. For example, all polices have exclusions within them and you should make sure you understand them as factors that have to be taken into account include your age, occupation and lifestyle to a degree.

A specialist provider can not only help you by ensuring you get the cheapest deal on the amount you pay for your policy but is also there to give support by way of their expertise.

Standalone providers simply have more knowledge of the product because generally they specialise in this type of insurance, unlike the high street lenders who lack expertise along with over charging on the premiums. So when it comes to buying redundancy insurance shop around and go to a standalone and more ethical provider for your policy to ensure that you get the best deal possible on your premium as well as quality cover.

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Simon Burgess has sinced written about articles on various topics from Mortgage Insurance, Finances and Income Protection Insurance. Simon Burgess is Managing Director of the award-winning , a specialist provider of. Simon Burgess's top article generates over 74000 views. to your Favourites.