This offers borrowers the security of knowing that their essential repayments will be made if they are off work due to an accident or sickness. This policy is paid on a monthly basis and will offer various deferred period which ties in with the client sick pay should you receive this from the employer.
For example, if you are in an accident or suffer an illness and or unable to work for a while, a lack of comprehensive income protection cover means you will rely solely on state benefits, which are unlikely to be sufficient to meet your mortgage repayments, let alone any other essential spending.
Income protection can help as it provides a tax-free monthly payment until you are able to return back to work.
Income Protection will pay out over the mortgage term or till you retire.
This provides peace of mind to the client so that the income can be used to protect the mortgage payment to prevent arrears and or repossession.