Choice of Payment Protection Insurance and Income Protection

Although payment protection insurance and income protection are designed to cover persons against unemployment, illness and injury, there are some important differences between these types of policies. For people working in the insurance industry, the various merits of PPI and IP may seem crystal clear. However, for the average consumer of the dividing line may appear rather blurred.

Notable similarities begin with the fact that the PPI and IP can cover the insured for anywhere between 12 and 18 months, depending on the choice of the payment period. This means that each type of policy is considered adequate protection against the disease long term injury and reasonable. However, it should be noted that the level of an insurance claim payment protection is entirely dependent on mortgage, loan or lease obligations, while the size of an IP payment is based on gains by the applicant.

As with most types of insurance, the premiums charged will vary depending on individual circumstances of the customer assurance. Those at high risk of injury or illness invariably pay more. This is true both insurance payment protection and income protection. However, when there is a period of forced redundancy of this is that the PPI policy will pay.

How much faith you can put in your payment is received PPI is quite questionable. With the numerous reports information readily available regarding misselling and exclusions policies people are rightly questioning the reliability of such insurance. Although there have been similar reports for income protection, they were not as widespread. The ability to obtain coverage at a reasonable price of this variety is quite large, especially if the policy is bought some time before the coverage period begins.

The experts will tell you that one of the biggest advantages of income protection is that it can be used to pay for the duration of the term, which can be until you are fit enough to return work or retirement. In the case of payment protection insurance, money will cease to be paid to the applicant after a defined period, whether or not they recovered from an illness or started working again. This is a major reason why people often look for alternative forms of coverage.

If you believe any of these types of policies is more appropriate than the other, it is absolutely imperative that you speak of your choice through an independent consultant. They can explain the options you had not previously thought, as the purchase of income protection and unemployment cover specialist. It might even be possible to get a big discount by investing in a beam of insurance.