Income Protection

Buying Income Protection Insurance.

Mortgage Payment Protection Insurance is, in the majority of cases, far more expensive than income protection insurance, as well with greater exclusions and stricter policy wordings put in place.

Not just this but you will probably discover that MPP insurance policies will very rarely cover your mortgage for any more than a year. Not to say that MPPI shouldn’t be taken out but there are other ways to ensure that your mortgage is paid if you are to suffer illness or an accident that leaves you unable to work or earn a living, designed to suit individual requirements and budgets.

With any income protection insurance policy that you wish to buy, you need to be thorough and look at all the different points of a particular policy, as each one can and will offer different levels of cover and benefits. For example when arranging Income Protection, you need to choose the type of protection best for you and a very important note we wish to mention is in choosing something called the ‘occupation class’ of a insurance policy.

It is this factor that many insurers will use to reach a decision on whether to pay out your claim or not. Obviously validating your claim is important, what would be the point of taking out insurance in the first place otherwise? Different insurers will offer various ‘occupation class’ definitions depending on the types of insurance that they offer.

The main choices are as follows:

Own Occupation Class – this type of income protection insurance is often the best as an individual can claim is he or she cannot do their stated job or occupation due to illness or injury or any other specific reason. This means that if you are unable to complete your normal duties such as a physical job, you can receive a successful payout and still consider a job that involves working from home, perhaps internet based or filling envelopes, to provide much welcomed extra income.

Any Occupation Class – this one is the trickier option and one that can leave you in a vulnerable position with insurance providers. ‘Any occupation’ relates to being unable to work any job whatsoever. To elaborate somewhat on this, imagine the same scenario where you cannot fulfil your role in the physical job you do. With any occupation class insurance, you would not be paid out if you were to do anything that can be classed as working, even internet based, working from a laptop in your bed!

Ensuring that you understand completely all the policy details and the benefits you would be entitled to receive in the event of having to make a claim is important and you should familiarise yourself with all the various conditions of a particular insurance policy before making your final decision. There are many income protection insurance insurers understand the market and offer unbiased and professional assistance to countless individuals.