Getting the right protection

Having adequate financial protection on the event of not being able to work due to accident, sickness or unemployment is extremely important. It can mean the difference between being repossessed and keeping a roof over your head.

Here we share tips on making sure that the protection policy you buy is right for your circumstances.

• First of all, look at the premium. If you go to a high street lender, the odds are that you will be ripped off. Try an independent specialist such as BritishInsurance.com which offers low cost cover.

• What is covered? Payment Protection Insurance (PPI) policies cover loans and credit cards. Mortgage Payment Protection Insurance (MPPI) covers mortgages and related costs. Make sure that you choose the right protection policy and also how much you are covered for.
• Look to see if there are any exclusions. Common causes of claims - like stress and backache – are more often than not excluded.
• Check out how many hours a week you need to work to be able to be eligible. With most policies, you need to be working for at least 16 hours per week before you can claim.
• How long will you be able to claim for? This varies but the maximum is normally two years. Most providers offer one years’ cover.
• Look at the occupation class. This will define how unwell you need to be to be eligible to claim.
• If you are self-employed, check the definition of “unemployment” under the terms and conditions. As an example, for a self-employed person to be able to claim, you will probably need to have wound up the business beforehand.
• The self-employed should also check what evidence they will need to prove their earnings as this will be required prior to any claim.
• Look at the terms of the contract for changes. Conditions and premiums could change with 30 days' notice. The insurance could also be withdrawn with just 30 days' notice.

Finally, do shop around for the right policy and put the time and effort in to finding the best cover. Should you ever need to claim, you’ll be glad that you did.