Differences between insurance Do you know your Critical Illness insurance from your Mortgage Protection? Or the difference between Payment Protection and Income Protection? With so many insurance policies out there, it can get confusing. Here’s the main difference between these policies: Income Protection Sometimes known as Permanent Health Insurance, this provides a monthly tax-free income if you can’t work due to ill health or injury. It covers injuries and most illnesses including stress, infections, depression and muscular pain. It will provides an income until you return to work or retire. Critical illness Provides a cash lump sum if you suffer from a serious medical condition. This covers some forms of cancer, a severe stroke or a major heart attack. It pays a cash lump sum that can be used for treatment, paying off mortgage, etc. Mortgage Protection Sometimes known as Accident, Sickness and Unemployment cover, this covers your mortgage payments if you’re unable to work due to illness, injury or redundancy. It covers all illness, injury or redundancy. It is normally paid for 12 months only. Payment Protection Covers mortgage, loan or credit card repayments if you can’t work due to an injury, illness or unemployment.Injury, illness or unemployment. Most policies will pay out for 12 months. Visit www.moneymadeclear.fsa.gov.uk and www.which.co.uk to find out more.
Feb 17, 2010