When you take out a mortgage protection unemployment policy you would be protecting against the possibility that you might lose your income after becoming a victim of redundancy. Your policy would provide you with peace of mind that you would not fall into arrears with the payments of your mortgage and face the possibility of having your home repossessed. This would leave you free to concentrate on finding alternative employment.
You would take out the protection by insuring up to a certain amount of your mortgage repayment and then if and when you put in a claim this is the sum that would be given back as a tax-free income. The money you received would go a long way towards ensuring that you would not be left struggling to find the money needed each month.
You would have to be unemployed for a certain length of time which is defined by the provider before putting in your claim and the protection would only pay out for a pre-agreed period. If you choose to take out cover with specialist payment protection provider British Insurance you would be able to make a claim from the 30th day of being unemployed and the benefit would be back dated to the first day your unemployment began. You would then be able to rely on your cover for up to 12 months with British Insurance before the protection would cease. Shopping around with other providers and you would have to check the terms of the cover offered by the provider as some could payout on a mortgage protection unemployment policy for up to 24 months. You need to check also when you would be able to put in a claim on the cover as some providers could state that you have to wait for as long as the 90th day of your unemployment.
The premiums for a mortgage protection unemployment policy would vary depending on the provider. With British Insurance they are based on the level of mortgage payment protection you need, your age and the amount of cover. You are able to take out cover against the possibility of suffering from an accident, sickness and unemployment together. However you could choose just to protect against accident and sickness or just take out protection for unemployment only. With age based protection the younger first time buyer can now afford to protect the roof over their head where before high priced cover taken from the high street lender would have been beyond their reach.
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