Accident, sickness and unemployment cover pays out a proportion of your income monthly income in the event you fall ill, have and accident or find yourself unemployed. You get to choose from the outset how long after becoming ill, sick or unemployed your cover kicks in. You also get to choose how long you want the cover to run (i.e. the benefit period). Your choices will be cover until you return to work, until you retire or until the end of your pre-defined policy term.
You do not have to take all three levels of protection as packages can be tailored to your needs. For example, if you are a self-employed tradesperson you are more likely to be exposed to accident and sickness because of the nature of your work. It therefore makes sense you have ‘accident & sickness’ protection to cover you main outgoings during any periods when you cannot work.
Conversely, if you are a white collar office worker employed by a large corporate sickness pay is usually very generous. The nature of your work means accidents are less likely but, it is not uncommon, for large companies to frequently re-structure in response to company performance. It would therefore be prudent to have unemployment cover which pays out after any such redundancy payment should your job no longer exist within the new company structure.
At The Mortgage Xchange when arranging your mortgage we search the whole market to find the best protection and insurance cover for you. If you do not currently have any protection feel free to click here to contact us where we would be happy to understand your individual circumstances and make a recommendation best suited to your needs.
Please Note: The Mortgage Xchange is a partner of Scott & Goose LLP who are directly authorised by the Financial Conduct Authority under reference 661183. Your home may be repossessed if you do not keep up repayments on your mortgage.