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Payment protection insurance 'cheap compared to losing home'
08 February 2008
People with mortgages who risk having their homes repossessed if they fail to keep up payments should consider income protection insurance, according to an independent adviser.
While at the time, paying into income protection insurance schemes can seem costly, Harry Katz of Norwest Consultants says, that in the worst case, not taking it out could see people losing their house.
However, Mr Katz said that the insurance is not necessary for everyone, with the decision to take it out largely dependent on circumstance.
When deciding whether to take it out people should assess what the consequences would be if they stopped working.
For some it would lead to repossession, while others would simply have to fall back on savings, though he noted that not everyone has these.
He said: "The best thing to do, rather than having income protection, is to have what used to be called 'money for a rainy day.' But that doesn't happen anymore. But if you’re going to carry on your life living off income or assets then you need to have something in case there's an emergency."
