Once you take out any kind of loan, it’s very important that you make all the repayments in full and on time. If your loan is a mortgage or other loan secured on your home, you could risk losing your home if you don’t keep up the repayments.
It could also affect your credit rating. These products are designed to protect your income or borrowing:
- critical illness insurance
- payment protection insurance
- mortgage payment protection insurance
- income protection insurance
- life insurance
If you are an employee and you fall ill, in most cases your employer must pay statutory sick pay for up to 28 weeks, though this will probably be a lot less than your full earnings. After that, you may have to rely on State benefits.
However, some employers arrange group income protection insurance for their employees as a benefit of their job, and this can pay out an income after the statutory sick period. So check what your employer offers.
Related articles on Income / borrowing protection :
Critical illness cover : all you need to know
Payment Protection Insurance : summary
Payment protection insurance : what you should know ?
Payment protection insurance: what are the main features?
Payment protection insurance: where might you get it from ?
Payment protection insurance : What is it ?
Income protection insurance or borrowing ?
