About iiib |
Income protection
| Key
features | INSTANT
QUOTE |
Apply for cover |
Policy wording |
Claims procedure | Financial
guide |
income protection quotes uk |
|
|
Income Protection NewsProtect yourself against the unforeseen. Buy an income protection
plan Britons now owe a record £700 billion, working out at £5,300
per family - and that doesn’t even include their mortgages. In a
buoyant economy few people worry about debt but, with a possible recession
looming, a growing number of workers could soon find themselves in difficulties.
Fortunately, there is a great deal that can be done now to reduce the
impact of future rising interest rates and even redundancy. Low interest rates have encouraged people to borrow but now a campaign
has been launched to make consumers more aware of the dangers of borrowing
more than they can afford. It warns that during the past year mortgage
lenders repossessed 23,000 homes and that figure is likely to rise. "Debt can have disastrous effects on people who over-extend themselves
or who find they are unable to afford their repayments, perhaps through
losing their job or falling ill, or simply through mismanagement of their
finances," says market-monitoring firm Mintel. Unmanageable debt already accounts for almost a quarter of all requests
for help at Citizens Advice Bureaux, with many victims struggling for
years before looking for advice. For many, taking out income protection
insurance could have guarded against their debt problems. Debt-management experts now believe an income protection plan is a must
because redundancy/unemployment rates are increasing. Social security
does not step in to pay mortgage interest until claimants have been out
of work for 39 weeks, and if they have £8,000 of assets, they get
no help at all. The Institute of Individual Insurance Brokers is offering an income protection
plan that will cover customers’ monthly outgoings if they become
redundant/unemployed or fall ill. The income protection insurance cover
costs £3.50 a month for every £100 protected. The policy will
pay out for a year. If you have expensive credit-card borrowings you can avoid falling into
serious problems by off-loading the debt into a cheaper loan. If you are
not locked into your mortgage, you can borrow more than you owe on the
cards from your existing mortgage lender, or shop around for a new lender. This extra borrowing can be used to pay off credit-card debt and for
at least a year of unemployment/redundancy. However, one needs to be aware. Most homeowners are a soft target for the clever marketing tactics of lenders who will exploit them for all they are worth. Despite commitments from the Council of Mortgage Lenders firms continue to offer increase and inappropriate finance to already over burdened borrowers who must seriously consider an income protection plan.
|
|
|
| © Income Protection Quotes UK 2003.
|
Contact
us | Home |
