Accident, Sickness & Unemployment

These can be combined in a single policy to provide protection for your mortgage payments, by replacing income lost through redundancy, as a result of suffering an accident, or being off work due to sickness or under a separate policy to cover just accident and sickness.

Policies for protecting mortgage and related payments can usually be taken out any time. There will be a 'waiting time' which you can choose, before the benefit commences and payment of benefits will sometimes be restricted to a period of 12 months in the case of redundancy and 36 months in the event of accident or sickness. The advantage of this type of cover is that it provides you with peace of mind, ensuring that your mortgage payments can be met for a known period of time.

For long term peace of mind you can effect a policy to replace a proportion of your income in the event of sickness or accident. This is known as Income Protection Insurance.

Any payments made under the above policies will normally be free of tax. However, the provision of such insurance may affect your eligibility for certain State benefits.