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Payment & Mortgage Protection

Most of us at some point in our lives will be in debt, be it the small amount outstanding on our credit card, a larger loan to buy a car or the many thousands of pounds which might be involved in a mortgage. Normally, if we have planned our finances properly, we should be able to make the repayments on these debts from the income we earn. But what happens if we have an accident, are sick or become unemployed through no fault of our own.

Payment protection insurance (also known as PPI or accident, sickness and unemployment cover) is designed to help you meet your monthly repayments on mortgages, loans, credit/store cards and other debts if you are unable to work for a variety of reasons.

PPI cover varies according to the type of loan whose repayment you are protecting:

  • Mortgage – This aims to cover your monthly mortgage repayments for a set period of time, usually 12 months but occasionally longer. After this period you will have to meet your monthly mortgage repayments yourself.
  • Credit and store cards – This aims to pay off a percentage of your balance outstanding or the minimum payment each month for up to a year.
  • Loans – This aims to cover your monthly repayments for the loan for a set time period, usually 12 or 24 months, after which you will have to pay your monthly loan repayments yourself.

Such products often also include an element of life cover which will generally pay off the balance of the debt covered if you die. If the claim is for disability, the monthly repayments may be paid to the end of the life of the loan.

The cover provided under different types of PPI insurance varies widely so it is important that you find the policy that is most appropriate to your needs. Speak to your Independent Financial Advisor who should be able to recommend a solution which suits you best.

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We are authorised and regulated by the Financial Services Authority. The Financial Services Authority does not regulate will writing and not all forms of long term care plans. IFM Utility Service is not authorised and regulated by the Financial Services Authority. Your home is at risk if you do not keep up repayments on a mortgage or any other loan secured on it. Think carefully before securing other debts on your home. A fee of up to £670.00 inc VAT may be charged on completion of your mortgage. A fee of 1% of advance or £1,080 inc VAT whichever is the greater may be charged on completion of your lifetime mortgage or home Reversion Plan. The Financial Services Authority does not regulate Buy to Let Mortgages.Terms and conditions apply. Written details on request. Tax relief's and allowances referred to are those currently applying and are liable to change. There value depends upon the individual circumstances of the investor.

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