Protection Products Compared
Once you take out any kind of loan, it's very important that you make all the repayments in full, and on time. If you fail to do so you could lose your home if it's a mortgage or if your loan is secured on it. It could also affect your credit rating.
Sometimes, however, the unexpected happens. For example, you might lose your job through redundancy, or find yourself unable to work due to long–term sickness. Employers in Ireland are not under a legal obligation to pay sick pay. Your employment contract will contain details of any schemes operated by your employer and it is important that you check what is in place. Listed below are some examples of products and why you might find them useful:
Critical illness (CI) - Get an instant quote now
What it's for: Pays out a lump sum if you're diagnosed with a critical illness.
What you need to know: You need to read your insurer's terms carefully, not just for the range of illnesses they cover but also their type. For example, while a heart attack may be covered, a cardiac condition such as angina may not, also not all types and stages of cancer are covered.
For a claim to be successful, you normally have to survive a month following the diagnosis.
Mortgage payment protection (MPPI)
What it's for: Pays your mortgage for up to 12 months.
What you need to know: Check if any medical problems you may have had in the past would be excluded if they cropped up again.
Life Insurance - Get an instant quote now
What it's for: Pays out a lump sum if you die.
What you need to know: For more information see insurance
Mortgage protection life cover (term insurance) - Get an instant quote now
What it's for: Pays off the mortgage loan if you die.
What you need to know: If you have a repayment mortgage (so the amount you owe gets smaller over the years), you can buy cover that reduces as the debt reduces. For more information see mortgage_protection
Income protection (or Permanent Health Insurance – PHI)
What it's for: Replaces up to 75% of your income if you are unable to work for a long period of time because of illness or disability.
What you need to know: It continues to pay out until you can return to your existing job or its equivalent paid work or reach retirement, whichever is sooner. PHI products have a waiting period before they will start to pay out. The longer you agree you'll wait, the lower your premiums so it is important you find out what income you can get from your employer, and other insurance (such as mortgage payment protection) you can get in the event of illness or disability.
This cover might not be available to you if you have existing health problems or a dangerous job. For more information see Income protection