By Jason Haines

Do you have a job that will provide a regular payment each month in place of your wage should you become too ill to work for a period of time?

If you have then you are one of the very lucky ones, if not have you thought about taking out accident, sickness, redundancy?

This is a type of insurance cover that will provide a fixed lump sum each month which has matched the amount of the premiums you have paid during the term of your policy. These payments can be anything between 0 and 1500 and will be paid for up to 2 years should you be too ill to work.

Mortgage Payment Protection
If you have a mortgage you should consider taking out a form of mortgage protection in order to make sure that you can meet your repayments should something prevent you from working. One form of mortgage protection is accident, sickness, redundancy cover, which will pay out a fixed lump sum each month for up to a year.

The amount that you receive each month can be anything between 0 and 1500 each month. If you die or become disabled during the term of your plan it will not pay out a lump sum as this type of policy is just for sickness and redundancy.

Pros and cons of accident, sickness, and redundancy cover
Pros-
If you have taken out a mortgage after 1995 it is worth taking out accident, sickness, redundancy cover as it is highly unlikely that you will get any assistance from the state to pay your mortgage.

If you have a job that does not have sick pay or you are self employed accident, sickness, unemployment cover is a very good idea.

If you don”t have any other cover this is a good option for you, especially if you know that your mortgage payments would be a struggle if you were too ill to work.

Cons-
There are certain conditions that the cover will not pay out for such as riding on a motorcycle, normal pregnancy related illness, backache or stress that had been diagnosed before you took out cover or any dangerous sports.

There are more conditions that will not pay.

You will only receive payments for a limited time usually 1-2 years.

It can be expensive.

The cover is only for a particular debt such as your mortgage, so it will not cover food and households bills.

If this type of cover sounds like the best for you the next step is to get an accident, sickness, redundancy quote. Without a quote you will not have an idea of how much money could afford to pay in premiums in order to get a lump sum each month that would provide adequate cover until you were back at work.

About The Author

Jason Haines is a protection and mortgage advisor at godirect.co.uk,one of the UK’’s most trusted information site about personal finance.

http://www.godirect.co.uk/life-insurance-quote/accident-sickness-unemployment-cover.php

This entry was posted on Friday, March 27th, 2009 at 11:05 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.