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What doesn’t it cover? Income protection cover does not cover you if you are unemployed. This is for those, who are employed and are out of employment due to sickness, accident and redundancy. It does not cover people who have deliberately left their job or voluntarily put down their papers. A payment protection insurance will cover even a self employed person unlike income protection. In their case, there is no redundancy but only protection against payments in case of sickness, accident etc. It is to protect those employees whose employer has laid them off. There is a financial crisis but you have an income protection policy in place which you can take benefit of. This means that you will not be benefited from this cover if you are self employed as there is no question of redundancy in your case. It will also not cover those policy holders who are on paid sick leave and are getting treatment in a hospital or are at home, taking rest. Those who are paid by their employer for their sick leave balance cannot say they are out of employment and make any claim. This will be cross checked by the Insurance company before they pay out to you. Never consider it compulsory to get a payment protection cover when you take a loan. If your lender tries to fool you by making it sound compulsory then he is misspelling it. Do not heed to this. It is of course expensive to get this cover, take this only if it is really necessary and you are unsure of your future financial status and employment status. If you do not have any savings or asset to bank on, then you must consider this insurance so that you don’t default on your loan payments. If you are going to get PPI, then check to make sure that you have the cover you really want and that the policy is useful for you. PPI can be worthwhile if you can afford the payments and you have a low balance. However, if you are self-employed and need to save money, then PPI is something you can usually do without. Financial security in the event of unemployment due to involuntary redundancy, accident, or illness Loan payment protection cover is one of the primary coverage types offered by industry providers. You are free to cancel this insurance when ever you want to. Shourya Ray Chaudhuri, Ezine Articles Expert Author.For more information: Payment Protection
Get more information: Income Protection Insurance
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