Saturday, 14 May 2011

How does income & payment protection insurance work?

"Income and Commitments Protection Insurance protects your monthly regular outgoings, usually up to 50% of your monthly wage, or £2,000 whichever is the lower. Though the main objective of this insurance is to protect your monthly re-payments towards your mortgage or loans or rent, one of the best things about commitments protection cover is that the money received from your commitments protection insurance doesn't just have to go towards only mortgage or loan repayments or rent; it can also be used to pay for your other essential expenses. You get to decide how to use the money from your policy. A commitments protection plan, also known as a regular commitments protection policy, can help reduce the stress of suddenly finding yourself out of employment. Whilst in employment, it's easy to take your monthly income for granted, but should that be suddenly taken away, without having income protection for loss of earnings, you could find yourself worrying about how to meet your financial obligations. A good form of unemployment cover means that you can concentrate on getting back to work rather than losing sleep over paying your bills. Income and commitments protection is also popularly known as payment protection insurance.
"Income Protection Insurance" protects you towards your monthly outgoings regardless of whether you use it to pay your mortgage, loans or rent. It is entirely upto you as to how you want to use the money you receive from this stand alone income protection insurance. The maximum benefit amount is usually upto a maximum of £ 2,000 or 50% of your gross monthly income, which ever is lower. If you are in a situation wherein you do not have a mortgage, loan or rent to pay and income protection insurance is the product to choose. Also if you have a mortgage, loan or rent payments are much lower when compared to the benefit amount you want, income protection should be your choice. Best Insurance is designed to in such a way that our interactive quote system automatically chooses the right product for you.


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  3. It can also be used to pay for your other essential expenses. Best PPI Advice

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