Mortgage protection:

Mortgage protection, also called mortgage payment protection, is a type of insurance that can help protect mortgage payments and associated household costs in the event of unemployment, illness or an accident. Through mortgage payment protection, you can insure your monthly mortgage payment, monthly life premiums and the monthly cost of your buildings and content insurance. Typical mortgage protection cover could include:

* Unemployment and disability insurance cover

* Accident or sickness

* Unemployment only insurance cover

* Disability only insurance cover

Loan payment protection:

Loan payment protection policies are designed to protect the repayments to any loans you may have taken out. They work on a similar basis to mortgage payment protection, but for a wider scope of Borrowing. Premiums for loan payment may be greater than those for mortgage protection.

Income protection:

In the event of unemployment, sickness or an accident, income protection insurance offers a limited income. Do make sure you understand the terms of the policy however, as the income that you received through cover may be significantly less than the income you receive through employment.

Private medical insurance:

Private medical insurance is a policy which will provide financial cover for medical treatment in the event of an acute condition. According to the Association of British Insurers, the majority of insurers define an acute condition as “a disease, illness or injury that is likely to respond quickly to treatment which aims to return you to the state of health you were in, immediately before suffering the disease, illness or injury, or which leads to your full recovery.”

Private medical insurance provides reassurance for people who know that treatment is available promptly should they become ill or injured.

Resources:

http://www.abi.org.uk/ The Association of British Insurers

http://www.moneynet.co.uk/insurance/index.shtml Consumer Insurance Comparison Research

About Rachel

Rachel writes for the personal finance blog Cashzilla – personalfinanosaurus – licensed to roar.

Rachel spends her not-so-free time researching and writing personal finance articles, but she gets through it with Smarties and Fruit Pastilles.

To read more about Rachel and Cashzilla visit:

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