When purchasing your new home, mortgage payment insurance may be the last thing on your mind, but this could turn out to be a big mistake. Protecting what could be your largest financial investment is a must. While you may have used your salary to determine your qualifying mortgage amount, if you were to lose all or part of that regular income how will you maintain your mortgage.

I don’t have to tell you the effects of not paying your mortgage. The Ministry of Justice has enough statistics to show the increase in repossession orders, the number to new applicants for state benefits etc. This means that the economy is unstable and you may lose your job at any time. So it might be wise to insure yourself against such events.

Mortgage payment insurance is designed to pay you a monthly income if you lose your job due to unforeseen redundancy, or if you are off work due to an accident or serious illness.

The benefit is not taxed and will last for up to 12 or 24 months depending on the provider you choose.

In order to apply for a policy you may need to have at least six months employment history. Other eligibility rules will apply so be sure to ask the provider about this.

It is also important to read the policy terms and conditions well and make sure your circumstances match.

Once you have your policy if you were to make a claim there is a 30 – 90 day waiting or deferment period.

Things To Note
Mortgage protection insurance is very beneficial in that it provides you with peace of mind along with a direct financial benefit but the income you pay will not cover your entire salaried income.

Providers pay a maximum percentage of your gross salary and you will need to determine if the maximum level is adequate for you.

Mortgage protection insurance can be obtained from many providers and your mortgage provider may try to insist that you purchase theirs, but if you want to get the best deal, you should explore other options as well.

Independent providers in particular are known to have lower premiums than the mainstream companies so that could be a good place to start. Generally the benefits are quite similar from provider to provider so the determining factor could come down to the cost of premiums.

Summary
Mortgage protection insurance can be the only thing that saves you from unpleasant things like bad credit ratings, summons and court orders or worst of all repossessions. Don’t leave your future to chance. If you are the only income earner, you need to ensure that you and your family are cared for and keeping a roof over you head can be one of the best ways to do so.

Owning a home can be a very exciting and liberating experience. It can also be quite scary. Having a mortgage is a huge financial commitment and if you rely only on your wages to meet the monthly payment you could be left in a vulnerable position if you were to lose all or even part of that income. Fortunately, if you have mortgage payment protection you can rest assured you will receive financial help when you need it most.

So what can this policy do for you?

Well it can prevent your name from being added to the ever growing list for mortgage repossession. The Ministry of Justice confirmed that the number of repossession orders increased in 2008, the last count in November 2008 was 38,511.

The policy will pay you a tax free income every month for 12 or 24 months depending on the provider you select. This money can then be used to meet your mortgage payments thus keeping a roof over your head.

The policy will only pay out in the event of unforeseen redundancy, sickness or accident.

Having the payment from mortgage payment protection will also provide peace of mind. You won’t have to worry about how your family will cope if you lost your job or even if you are on your sickbed, there will be no need to concern yourself with anything other that returning to good health

Things To Note
Most policies carry exclusion clauses that the provider may or may not take the time to explain. You will need to dig deeper and find out how or if these will affect you before taking out your policy.

With regard to the benefits, there are maximum limits imposed by the providers. It is usually a percentage of your gross income so don’t expect it to cover your full salaried income.

Providers may be flexible and allow you to take cover for only one or two of the qualifying events as listed above.

When it comes to the benefits, most mortgage payment protection policies are the same. The difference becomes apparent when you see the cost of premiums. Usually the stand alone policies offered by independent companies are lower.

Your mortgage company may try to offer you their protection product but you don’t have to accept it. Feel free to see what else is available.

Summary
So there you have it, the benefits of mortgage payment protection. The policy is there to provide you with financial assistance when it is most needed so you can continue to live in and enjoy your home. Best of all you’ll have the peace of mind that you will not face financial ruin if you lost all or part of your regular income

The truth is that unemployment insurance is not very difficult to understand. If you were to lose your job due to an unexpected and involuntary reason, the policy will be there to pay out a monthly income.

The main instance covered is redundancy. Losing your job can be very stressful and while you may not want to consider this possibility, with today’s economy you can’t help but prepare for any eventuality.

If you did need to make a claim on this type of policy, you can expect to receive a monthly payment for 12 to 24 months depending on the provider you choose.

The income is paid free of tax and can be used to cover mortgage and rent payments, utilities or even credit card bills.

In order to apply for a policy, you will need at least six months employment history and you must not be aware of any impending redundancies.

There are specific entry requirements and exclusion rules that you will want to pay attention to, so be sure to read your provider terms carefully.

Once you’ve been accepted for cover, you should know that most policies carry a 30 – 90 day deferment. This means you won’t be allowed to make a claim until that time has passed.

As good as this unemployment insurance is with regards to providing financial help and peace of mind; there are a few things to consider.

Firstly, the policy will not pay the equivalent to your salaried income as there are maximum benefit levels with unemployment insurance. Most times the provider will cover a percentage of your gross salary.

If you wanted to add sickness and accidental coverage, you will need your provider’s permission and this could cause your premium to increase.

On Choosing A Provider

If you took out a loan or other type of credit recently, the provider might have tried to sell you unemployment cover. You don’t always have to take the same cover as provided by your credit company.

The Competition Commission is actually trying to make it illegal for companies to sell you protection products within 14 days of you taking out a credit agreement. This will give you enough time to see what other companies have to offer. If you want the same product that the company is providing you can approach them freely and still obtain the insurance you need.

The thing is, if you were to look at stand alone policies from independent providers you could end up saving on your premiums.

Summary
There is no telling what tomorrow holds. If you rely on your salaried income to pay your day to day expenses and you suddenly lost you job, that could lead to financial difficulties very quickly. By taking out unemployment insurance, you can protect yourself and your finances.

Well the figures are in and they do not look good. As at December 2008, the number of people claiming benefits was 1.16 million, the highest figure since January 2000. The redundancy figures as at the end of November 2008 was 225,000, this is an increase of over 101,000 for the year. With information like this it probably would be a wise idea to consider redundancy insurance.

If you were to lose your income, how will you meet your mortgage, rent or utility payments? How will you keep food on your table and take care of your loved ones? Without access to state handouts, a supplementary or replacement income you could face financial ruin

Luckily, redundancy insurance is designed to provide a monthly income if you lost your job due to involuntary redundancy.

Main Features and Benefits
The income will be paid free of tax for a period of 12 or 24 months. The maximum time is subject to the provider conditions. You should know that the policy has maximum benefit levels so don’t expect to have your entire salary erased. The provider will pay a percentage of your gross salaried income.

When taking out your policy, make sure the income level will be enough to meet most if not all of your day to day expenses.

The best part of this policy (and I know the financial benefit is great) is the peace of mind you receive. Even in an uncertain economy, with your protection product in place, you won’t have to worry about how you will meet your monthly expenses if you lost your job. The policy will take care of you.

If you wanted, you could approach your provider to get accident and sickness cover added to your insurance, but be aware, this may carry up the cost of your premiums

You will be expected to have at least six months employment history before you can apply for a policy. So if you want to get coverage, sooner is definitely better than later in this instance.

Policies carry a 30 – 90 day deferment period so be aware of the time required by your provider.

Things To Note
If you are concerned about the cost of premiums, there is a way to obtain low prices. If you approach the independent companies, you will find their prices are often lower than the major high street outlets.

Summary
It seems as if redundancy insurance is becoming more and more relevant in today’s economy. The rise in unemployment and increase in the number of people claiming benefits is startling. At least there is a more secure way for you to protect yourself against loss of income and avoid the financial repercussions of redundancy.

Although it is not as easy to get a loan at a good rate anymore, loans are still selling like hot cakes. In fact, it seems to be a necessity in today’s market. The wages we earn just don’t seem to go as far as it used to and sooner or later an injection of cash is needed. Have you thought how you will pay your loan if you lost all or part of your income? This is where a loan protection policy could be very useful.

The policy is designed to help you meet your monthly loan instalment if your regular income disappears as a result of involuntary unemployment or if it had to reduce due to sickness or accident recovery.

The payments are made monthly, free of tax and depending on the provider you go with plus the payments will last for up to 12 or 24 months. Usually if you return to work within the maximum period, then the payments will stop.

To apply for loan protection you will probably need to be employed for at least six months. Once the policy is up and running if you do need to make a claim, you won’t be able to until the policy deferment period has passed.

Most providers have a deferment period of between 30 – 90 days.

Beside the financial benefits of the policy, the peace of mind you get is priceless. If you did suffer an accident for example and you were off work for a while, you won’t have to worry about how your loan will be paid. You can concentrate on returning to health and nothing else.

Selecting A Policy

Most of the loan protection products have the same or very similar benefits so when making your decision it often boils down to the cost of premiums.

Independent providers normally have lower premiums than high street companies so if you are looking to save a few pounds you might want to check out the stand alone policies.

Most policies have exclusions and specific eligibility rules that you should get to know. Providers don’t always take the time to explain what the exclusions are and how they will affect you. With these policies no medical underwriting is done so you have to make sure the policy meets your needs and that your circumstances are covered.

Summary
Loan protection is vital when you take out a loan. While you enjoy the benefits of the cash injection, you should still be prepared just in case the unthinkable happens. Life is so uncertain and with an economy that has seen better days, if you lost all or part of you regular income it could be the start of financial ruin. If you were wise enough to protect your payments, then you can avoid the most unpleasant outcome.

If you just got a new loan, the provider probably tried to sell you loan insurance. Before you take them up on their offer you should evaluate whether or not the insurance is right for you. Failure to check your circumstances could result in you either paying for a policy you can’t use or stuck with thousands of extra pounds to repay.

Firstly, do you have any savings that can cover your loan payments for at least six months if you were to find yourself out of a job or with a significantly reduced income? If you do, that’s great; the insurance may not be needed.

If you have no other means of savings however and you need a product to help you repay your instalments in the event of redundancy, sickness or accident, then you might want to protect yourself.

Once you qualify for the payment, you will receive an income for 12 or 24 months depending on the provider you choose. The payment will cease when the maximum period has expired or if you return to work within the period.

Your provider may allow you to be insured against only one or two of the involuntary events, but you will need to get the ok from the start.

Loan insurance is there to help you financially and mentally as it can give you the peace of mind you need if you are going through a redundancy or recovering from an accident or serious illness.

Policy Features
Providers usually require a minimum period of employment before you can apply for a policy. Once that criterion has been satisfied if you do need to make a claim you’ll need to wait out the 30 – 90 deferment period.

The cost of premiums can be very low if you know where to shop. By visiting an independent provider you will find that there are deals to be had especially if you compare it to what the high street companies have to offer.

A note of caution
Many providers have sold protection products without explaining all the features and benefits and this resulted in claims for mis-selling. The regulatory bodies are keeping a close eye on the market and while things have improved you still need to be vigilant.

Before taking out your loan insurance, be sure to read the terms and conditions carefully. Does it match your circumstances? If the answer is yes then if you need to submit a claim, the chances of it being accepted will be good. If you find the policy does not meet your needs then look for another provider.

Summary
Loan insurance is a good way to stay out of financial difficulties if you are suddenly faced with little or no income. It will provide the financial help you need and the peace of mind to keep going until things return to normal.

With the state of the world economy heading south, the level of unemployment seems to be heading north. And everyone stuck in the middle are getting more and more nervous especially if mortgages are involved. The thought of losing your job could be very concerning, but if you have a mortgage protection UK policy you could come out smiling.

This product will help you meet your mortgage payments if you lose all or part of your income due to an involuntary reason. This could be due to redundancy, sickness or accident.

Owning a mortgage is a big accomplishment and in today’s economy keeping it seems to be an even bigger challenge,

Policy Benefits and Features
A mortgage protection UK policy will pay a monthly income for 12 or 24 months depending on the provider you choose. This benefit will not cover your entire salary as there are maximum benefit levels; however the payment is made free of tax. If you returned to work before the end of the 12 or 24 month period your payments will cease.

If you want peace of mind during a very shaky economy then you might want to consider protecting your mortgage payments. With cover in place there’ll be no need to worry about missed payments leading to poor credit or even repossessions.

Points To Consider
We mentioned earlier that the policy will not replace an entire income; well most providers will pay a percentage of your gross salary so make sure this is enough to cover your mortgage payment.

Most policies carry details of exclusions and specific rules in the fine print so be sure to read them all. Some rules relate to the number of hours you can work to qualify or the type of job you’re in or even regarding existing medical conditions.

With most providers you must be employed for a specified period before you can apply for the product and before you can make a claim you may need to wait out a deferment period.

It is best to familiarise yourself with these points as you don’t want to end up with a policy that will not cover your individual circumstances.

Most mortgage protection UK policies have similar benefits but you can get varying quotes for premiums depending on where you shop. The independent providers will more often than not have the lowest premiums in the market.

Summary
Can you see how important mortgage protection UK cover can be? Of course if you have huge savings that could tie you over until you return to work, this product may not be suitable. However if like the majority of Briton you live form pay check to pay check, protecting your mortgage payments is worth considering.

It’s all in the name. Just by reading the headline of this article, you can probably tell that this product will protect your mortgage. But to help you even further, we will go into details of what mortgage protection can do for you.

Basically, if you were to lose all or part of your regular salaried income, this could affect your ability to meet your monthly commitments including your mortgage. You could probably borrow or use credit cards to purchase goods and pay utilities, but with some mortgage payments being very high, paying by credit card may not be sustainable.

If you were to find yourself with a reduced salaried income due to sickness leave or with no income due to redundancy, the product will step in and provide a replacement or supplement income to help you meet your mortgage payment.

You can only qualify for benefit payments if your reason for being off work is involuntary. However once you qualify, you will receive a tax free monthly income for 12 or 24 months subject to the provider terms and conditions.

The policy will not replace your entire monthly income as there are maximum benefit levels attached.

The major benefit of having mortgage protection is the peace of mind you will receive. You won’t have to concern yourself with threats of repossession, bad credit profiles etc. The financial aspect will be covered so you can carry on looking for a new job or returning to good health.

Choosing Your Policy
Firstly if you want to save on premiums, then obtaining a quote from an independent company could do just that as their premiums are often much lower than the high street providers.

Due to the maximum benefits, you will need to ensure the payment you sign up for will cover your mortgage payments or else the policy may not be worth it.

There are specific deferment periods which can be anywhere between 30 – 90 days. The longer the deferment period the lower the premiums tend to be. While evaluating your options, be sure to read your terms carefully just to ensure you are aware of all the exclusions or special conditions attached to the policy.

Some providers also have added extras. As an example you may be offered cover for related mortgage expenses such as home insurance with your policy. This is something you will need to ask your provider about.

At the end of it, if you purchase your policy then you change your mind you will have 14 to 30 days to cancel depending on the provider you choose.

Summary
You should now know a lot more about mortgage protection and the benefits it provides. Have a look at your circumstances and then decide if this type of protection is right for you.

The answer to this question is simple: Anyone who has a mortgage will benefit greatly from mortgage insurance. This product falls under the payment protection umbrella and has a specific purpose. It will help you meet your mortgage payments if you were to lose all or part of your regular income under involuntary circumstances.

If you think you are not at risk you might want to look at statistics from the Council of Mortgage Lenders. The latest figures stated that the forecast for mortgages in arrears was expected to exceed the predicted 170,000 figure. Of this amount the Council expects repossessions to be in the region of 45,000 for 2008. The final figures for 2008 are not yet available.

Can you imagine being out of a job or off sick, not having money to pay your bills? This could lead to you becoming one of the statistics.

Fortunately with your insurance in place you don’t have to face such a stressful and unpleasant future.

More About The Insurance
As part of your protection, you will be paid a monthly income which is free of tax if you are off work for an involuntary reason, whether redundancy or sickness or accident.

Payment will last for approximately 12 or 24 months depending on the provider you choose. If you were to return to work within the maximum payment period then your benefit payments will end.

Having the mortgage insurance in place not only takes care of the financial matters but it significantly reduces the stress you could have faced. Without meeting your monthly mortgage payments, you could end up with a poor credit rating, unpleasant red letters or worst of all you could lose your home.

The peace of mind provided by this policy is therefore priceless.

Features
The insurance is not designed to cover your entire salary. There are maximum benefit levels attached. Very often, the coverage is based on a percentage of your gross salary so you need to make sure the payment will cover your mortgage instalment.

While mortgage insurance policies are easy and straightforward to obtain, there are eligibility rules and exclusions that you should be aware of. It is important to make sure your circumstances match the rules of the policy so if you do need to submit a claim, it will be accepted.

Another thing to note is that quotes obtained from independent providers are often much lower than the high street companies and this is in no way a reflection on the quality of benefits you will receive.

Summary
Mortgage insurance should be seen as a vital complement to your mortgage. It is all good and well to save and purchase your dream home. But make sure and keep it in your hands by protecting the payments.

Income protection UK style often has all the appearance of a surprisingly half-hearted, not to say careless, matter of concern. The government tinkers with welfare reform by making the slightest of adjustments to Jobseeker’s Allowance for the unemployed; statutory redundancy pay for those who lose their jobs; and incremental adjustments to statutory sick pay for those who are incapacitated for work. Yet the same government has recently conceded that the present recession is the worst “for over 100 years” and still only around one in ten individuals have any personal income protection plan.

Probably the most startling admission from any government minister on the depth of the UK’s current economic woes was made by one of its most senior members, Ed Balls MP, whose comment that “this is the worst recession for over 100 years” was reported by The Independent newspaper on the 10th of February 2009. As the newspaper pointed out, this would make the current state of affairs even worse than that of the Great Depression of the 1930s, when unemployment in some parts of the country hit 70%.

The astonishing prediction comes in the same week that the same newspaper revealed that the government is merely looking at – rather than acting to change – the levels of redundancy pay available to dismissed employees. For those under the age of 41, this is currently the equivalent of one week’s pay for each year of service (up to a maximum of 20 years), but with a cap on the maximum payout of £7,000.

For those about to lose their jobs – with total unemployment rising from the present two million to at least three million – during the course of this year, therefore, government intervention is likely to do little to bring any income protection UK comfort.

More surprisingly, perhaps, is the apparent reluctance of employees themselves to take matters into their own hands and to arrange their own income protection. According to a detailed survey* last year of employee’s expenditure, savings and insurance cover, only one in ten appear to have made any provision at all for personal income protection.

Yet income protection insurance is one of the most simple and straight forward personal safety nets to put in place. In return for a remarkably modest monthly premium, the policy holder can be assured of a regular, tax-free, replacement income whenever he or she is incapacitated (as a result of an accident or illness) or unemployed after being made compulsorily redundant. This provides a reliable way of ensuring that a realistic replacement income (the level of which can be determined by the policy holder) is immediately available in times of crisis.

An estimated 90% of the population still in work, therefore, could stand to benefit from this particular form of income protection UK style.

* Yorkshire Building Society – The Protection Gap, July 2008