5 Steps to Understand Income Protection Insurance and how it Works for You

First and foremost, in order for you to understand your personal insurance and its processes and other parts, you need to pay attention to every details of it just like you are buying something for your daily needs and less for your “other” things like gadgets and stuff that you don’t really need at the moment.

With income protection, as its name suggests, it is made and designed for people to ensure that they will continue to receive an income if they are or they will be unable to work anymore perhaps because of age, illness or disability and any other related cases. It is made for people and people should understand its process well for them to know and work it out properly as they wanted it to be.

So to help you understand how income protection insurance works, here are our top 5 steps in order for you to find the right policy that suits your needs with your income protection insurance:

1. Identify the kind of income protection you need

This will depend on how long you require your policy to pay you an income. And because you want to enter the income protection insurance policy, you need to settle this first. There are many different ASU policies available, including Payment Protection and Mortgage Payment Protection Insurance. When it comes to Payment Protection, this one usually meets the cost of a specific debt that you are facing as of the moment that prevents you from making your insurance in default mode.

On the other hand, the Mortgage Payment Protection will cover the cost of mortgage payments for a limited time. It is worth noting that for both of these types of policy; your insurer will pay you directly. In choosing the right insurance to use, choosing a longer deferred period can help reduce the cost of premiums.

2. Choosing Long Term Income Protection

This is like choosing what you really need from what you really want kind of process. When you choose the long term income protection, you need to make sure that you know exactly which kind of plan you are buying. You can visit our previous posts regarding the different types of policy to choose from.

3. Think carefully on how much you put in your income protection

When you are just over-seeing this one, you will surely miss everything about it. You should never underestimate your income protection in order for you to achieve low premiums. You won’t be allowed to insure for more than your gross salary, because insurance cannot allow you to make a profit out of your misfortune. Think carefully about how much you need each month to get by, so that you don’t end up under-insured.

4. Know the other benefits that you are sure to be entitled to cover

In other words, you need to check other income cover benefits first before anything else. This is to make sure that you are allowed with this kind of income protection whenever you are unable to work anymore. You need to always look at your sick pay arrangements in your contract of employment because some employers may overlook at it and take it for granted. You need to always “read the small print” carefully in your contract.

5. Monthly premiums for Income Protection will depend on a variety of factors

This is for your cost of income protection policy premiums. These income protection insurance are made because your job will also have a bearing on how much you pay for it. Think of it carefully before rushing through it. It is not an easy process to take but everything about it will be worth the work.

Most businesses nowadays have taken a usually quite dry and technical subject to make it more fun and in an unexpected way. As an employee, you need to be ready all the time before the time comes. For more income protection insurance policies and tips to read, visit our previous and upcoming posts in our site. Remember, it is better to be safe than regret it in the end.

Why You Should Get To Know More About Banking

One of the things that I like about banking is that I can get money from my salary, put money for savings and to be able to earn more by let’s just say, interest. Banking nowadays may already seem a routine. But did you think of its importance?

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One of the things that I wanted to share on is that some of the bank machines have difficult instructions. Have you ever feel confused as to whether what buttons to press or what step would you be the next to do? I did experienced it once and I was actually dumbfounded. It when a certain bank company tried to innovated and upgraded their bank machines. There was actually no instruction or even an announcement that said that the bank machine have changed. I was so worried that I may not get

Anyway, banking. Banking really is an important part of our society today. Modern people as we are, we rely on banking to get our money or to be the place to save up our money. For me, here are the things that makes banking important:

It earns you money.

If I have received my salary or even been given money, sometimes I would deposit it to my bank account. I do this because in time, the money that have been depositing into my account will earn an interest. And by earning interest means growing my own profits. I have been doing this most of the time and as I keep saving my money by depositing, I am becoming closer and closer to my goal. I intended to save up my money for my future. It is actually a good habit don’t you think? By using the bank as a means to help you save up.

The government will insure money you keep in the bank.

This is probably the most important reason. When you are banking, you are placing your trust and especially money to a certain bank company. This is a big issue because it is our money we are talking about. I am placing all of my savings to my bank, naturally I trusted that bank company of mine. And whenever that bank company by any chance fails, I needed to be sure that the government will be able to insure the money that I have in that bank.

Bank products help you budget.

There are several things that a bank can offers. They may offer different products and services that can be beneficial for you. Like what I do, I divided up my money to be able to reach different goals of mine. I allocated $1,500 to my checking account per pay check, $150 to my general savings account per pay check and $150 to my retirement savings account per pay check. This is actually very helpful and very beneficial for me in the future because this way, the separation of my money keeps me from dipping my hands into savings and allow me to stay on track with my monthly budget.

Well, these are just what I deem most important about banking. I hope you guys learned a trick of mine to be able to save. I encourage you to save up for the future and spend less than you really need to.

Payment Protection Insurance vs. Income Protection Insurance

What is Payment Protection Insurance? What is Income Protection Insurance? Are they the same or are they different? Have you ever wondered what their differences may be? Well, it took me quite a while to figure out what are their differences and the difference of the when will they be used in certain circumstance.

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According to what I have learned, Payment Protection Insurance is very much different from Income Protection Insurance. Why? First and foremost, Payment Protection Insurance is an insurance product while Income Protection Insurance is an insurance policy.

The Payment Protection Insurance enables consumers insure repayment of loans if the borrower dies, becomes ill or disabled, loses a job, or faces other circumstances that may prevent them from earning income to service the debt.

The Income Protection Insurance is an insurance policy paying benefits to policyholders who are incapacitated and hence unable to work due to illness or accident. It is available in Australia, Ireland, New Zealand, South Africa and the United Kingdom. The Income Protection Insurance is formerly called Permanent Health Insurance (PHI).

Did it lighten up your thoughts about the difference between Payment Protection Insurance and Income Protection Insurance? Well, it also took me quite some time to be able to fully understand their difference but let me break more of their differences down for you:

Payment Protection Insurance

What is it?

The Payment Protection Insurance was initially designed to provide loan payment protection, such for mortgage, against the risk of accident sickness or unemployment. When I researched more about it, I learned that it is now available to cover general income rather than a specific loan.

How long will the policy cover for me?

The Payment Protection Insurance usually has a pay-out period of up to 12 months thus only covering short term acute conditions.

Guaranteed Premiums

Premiums are reviewable thus insurers are free to increase their premiums at any point.

Medical Underwriting

Any pre-existing medical conditions are usually excluded automatically making the cover provided unclear.

Income Protection Insurance

What is it?

Income protection insurance is designed to cover your earnings in case you cannot work due to illness or injury, although some policies allow you to add redundancy cover, although this is not very common.

How long will the policy cover for me?

Income Protection Insurance can pay-out until retirement thus fully covering serious medical conditions. I have a friend of mine that once had an accident and he was able to use his even though he is not yet retired.

Guaranteed Premiums

Income Protection Insurance is usually possible to fix the monthly premiums over the life of the policy.

Medical Underwriting

Income Protection Insurance policies are underwritten upfront so it is made clear from the outsets if an existing condition is not covered.

There you have it, the differences between Payment Protection and Income Protection Insurance. When you do want to distinguish their difference, all you have to do is list all the important factors and compare if ever they have difference. In this case, they really are different from each other. In a sense, both of them can help people with their insurance. The next question of this is which one will then be much advantageous? Basing from all of the things I have presented, I leave that answer to you.

How to Know If You Have Mis-sold PPI?

You may have heard of the controversy concerning mis-sold PPI’s in the UK. Believe me it was awful. A significant number of us policyholders have found out that the insurance we have is useless as we would not be able to claim. I was self-employed at that time and boy, it did cause me a headache.

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Good thing that the industry is working really hard on this case. The banks now must trawl their records for PPI policies which were mis-sold. They informed me as well as the other policyholders that we may now be able to reclaim our premiums. The

Financial Services Authority (FSA) required the banks to contact us customers to see if there was a systematic problem in the way policies were sold. As it turned out, some of the banks’ marketing literature issued alongside all policies did not comply with the FSA guidelines. This in turn, will result to us customers reclaiming our premiums.

I really had a hard time identifying myself if I have mis-sold PPI but as I inquired and researched further, I have learned to identify them, and here they are:

If ever you want to identify yourself if you have mis-sold PPI, ask yourself these questions:
• Was the insurance made clear to you?
• Did the adviser tell you about any significant exclusions under the policy?
For example in the exclusion, you won’t be covered for any pre-existing medical condition.
• Did the adviser made it clear that you would have to pay for the insurance up front in one single payment when you took out a loan or finance agreement?
• Did the adviser made it clear that the insurance cost would be added to the loan and you would be paying interest on it when you had to pay for the PPI as a single payment?
• Did the adviser made it clear that the insurance would run out before you had finished paying for your loan or finance agreement?
My loan or financial agreement lasted for more than five years. The adviser did not told me that I have to continue paying the insurance premium even after the insurance expired. He should have told me.
• In the case that if you have bought PPI after January 14, 2005: Did the adviser try to persuade you to take it out by saying something like ‘we strongly recommend that you consider taking out PPI’?
They should have issued a ‘demands and needs statement’ to show why a particular policy has been recommended and why it is suitable for me. But they didn’t. And this is why they are ground for complaint.

If you are done asking yourself of these questions, you might realize that most of them, the answer is no. If I ask these questions myself, almost all of it are no. I have mis-sold PPI. Are you?

If ever you are, then fret not for there will still be a chance for you to reclaim your PPI. I have already reclaimed mine, you go and reclaim yours too.

You Might Ask Who We Are So…

Having mis-sold PPI is simply not the best experience that you could have experienced. It is actually not fair at all. The Payment Protection Insurance should be able to help you cover your debt repayments whenever you are ill, unable to work or due to redundancy. I too, have been a victim of this sort and I was so frustrated that I have to experience this. I say, we should start reclaiming our PPI for we deserve it.

I and my team of University students will help you to be able to reclaim your refunds as quick as possible. Through our extensive research and personal experiences, we will help you by giving you steps and tips. We will provide you more information so that you may know more about what you are dealing with. Reclaiming the PPI’s may not be very easy but we will be doing our very best to be of service to you.

Paul