What Is The Difference?

ahappychappy

I hope someone can help and explain in clear to understand terms what the difference is between Mortgage Payment Protection and Income Protection please?

I have been looking at Mortage Payment Protection but have now found out abour Income Protection and have checked around various sites offering the producds and they both seem to offer the same cover, insurance for if you fall ill, have and accident or are made redundant. Is there any real difference in the products?

Many thanks for any help anyone can give.

Rolandtheroadie

Mortgage payment protection covers your mortgage, income protection covers more than just your mortgage. You would be protecting a chunk of your income, not just mortgage payments.
Way back in 2000, income protection could only cover certain things like mortgage, endownment, insurances. Dont know how much of your income/elements of your income you can cover now.

dunstonh

Income protection comes in three types
1 - Permanent health insurance (the best option)
2 - payment protection
3 - mortgage payment protection

All three will usually be marketed as income protection but they have different rules and different ways of working.