Intricacies Of An Insurance Coverage?

By Author: Vijay Koragappa Shetty
Total Articles: 2542
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Insurance company faced a lot of difficulties during the great depression. They had to set new industry profit records during this time. Those who remained with the same policy plan where charged more on premiums, hence the policy rates increased.

Be it car policy, health policy or payment protection policies, they all faced difficulties with economic down turn. It isn't that easy to pay these premiums during financial crisis. One must have saved enough during a salary cut or unemployment problems. But think of the protection it offers you in times of a catastrophe. You are well protected when you are out of job and have enough of funds to keep up with your basic needs and also pay back your mortgage dues. Just imagine, if you had no policy in place you had to suffer a lot. Your collateral which was pledged against the mortgage would have been in jeopardy. No lender will help you in this situation. He will confiscate in order to claim the money to cover up your mortgage dues. You will have to face a county court judgement or eviction for not paying up your loan payments very month and for non payment of rent too.

You ...
... get to safeguard your self and also your dependents. There would be no hassles in paying up your child's tuition fees or examination fees. You breathe a sigh of relief, even in an economic crisis situation. Keep up to date with your payments and be consistent with your loan dues, credit card bills, mobile bills and power bills etc. Make your investments right away so that you will have a secured future. There is no need to worry when you have an income protection policy in place.

One must not mix up a mortgage protection policy with that of an income protection policy. A mortgage protection more specifically helps you to meet your loan payments in case of accident, sickness or unemployment. On the other hand, income offers you a wider scope as you have a portion of your earnings on hand to spend in any way. Some may have mistakenly bought an income protection policy when a payment protection policy would have been far more appropriate, and far cheaper. On the other hand, permanent health insurance does protect earnings directly and is designed to cover not only specific monthly commitments but also general living or lifestyle expenditure.

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