If you couldn’t work because of illness or an accident, or were made redundant could you afford to live in your home? How would you pay your mortgage or rent and other related costs and make sure that your bank or landlord couldn’t throw you out? Right now you’re healthy and working and it’s easy to think it won’t happen to you. But for many families it does, and redundancy mortgage or income protection costs very little in order to be prepared.
The Government provides only limited help (only the interest on your mortgage payments, and only up to a certain amount of your rental payments) and you may not receive any payments towards your mortgage until 3 months after you claim, if your partner is working or has significant savings you may not receive any help towards your mortgage or rental payments at all.
Redundancy Insurance or Unemployment Insurance provides vital cover should you loose your income, this is especially important in the current economic situation, yet Unemployment Insurance can be very affordable and if taken out with a reputable provider will give you a safety net if you should be made redundant. But you need to be careful to select a company with an excellent claims history as cheap insurance that doesn’t pay out is no better than no insurance at all.
Protection for your home against unexpected unemployment, like redundancy, is simple and cheap. For a small monthly payment, unemployment or redundancy protection insurance will pay a regular amount to cover your mortgage or rent and other costs like endowments and insurance. Why risk your home for a few pounds a month?
With mortgage payment protection cover or income payment protection insurance some companies allow you to select unemployment only cover, which will give protection in case of redundancy or other involuntary unemployment, as well as having to quit your job to become a full time carer for a member of your immediate family. Income payment protection insurance does not only cover mortgage payments, it can also be used to safeguard your rent payments, utility and council tax bills or even your monthly food costs. Alternatively, you can select an Accident and Sickness policy which covers you not being able to work due an accident or illness. Most people choose Unemployment as well as Accident and Sickness cover.