Payment protection can be done in three different ways such as:

Income protection insurance, mortgage protection insurance, and loan payment protection are part of the same insurance policy coverage.

When you are unable to go to work and need enough cash to run your house hold expenditure then payment protection will help you replace a sizable portion of lost job income. You may have been unable to attend to duty due to various reasons such as loss of job, accident, sickness or redundancy. It involves an income supplement of up to a certain percentage of the policy holder’s income and the provider’s set limits.

-Pay off your current and phone bills

-Pay off your grocery bills

-Your kid’s school fees

-Medical bills

-Mortgage payments

If you get a payment insurance, they will help you with a portion of your income when you are unable to go to work. In case you have opted for a higher premium policy then you may get an income supplement up to your retirement age and will cover incapacity only. If you have bought your house through the help of mortgage loan and have used home equity mortgage loan for your residence, then this can be covered under Mortgage Insurance.

Make use of a portion of your salary to pay premiums of income protection policy. Get additional income benefits by applying for a policy which will safeguard your income, loan payments, credit card bills and other bills etc. This will save your house which is used as a security for the mortgage loan. In case you are unable to make the mortgage payments in times of redundancy, inability to work due to sickness, accident etc the insurance company will cover your mortgage payments. Every protection policy will have its own limits, find out about the limitation before you apply for one! Weigh the pros and cons, to be on a safer side.