Archive for the ‘Mortgage Protection Unemployment’

When economic storm clouds gather, many families may start to wonder if there’s anything they can do to help minimise the chances of them suffering the worst effects. Some people immediately turn to reducing their car journeys and leaving some of the luxuries out of the shopping budget. Holiday destinations might be changed, and some other big purchases put on hold. However, there is still the risk of difficulty, particularly if someone has a homeloan, and a mortgage protection unemployment policy may help some households.

This is a form of financial insurance which can provide an added safety net when times are looking tougher. A mortgage protection policy is for people concerned that they may in the future struggle to pay back their home loan through no fault of their own. For example, most policies of this type will protect someone if they lose their income due to being ill, being off work for long periods with an injury suffered in accent, or if they lose their jobs through being made redundant involuntarily.

This is a type of insurance designed to help someone keep going in a crisis, and to make up for the shortfalls which can emerge from inadequate sick pay policies which only last a few months and redundancy packages which are ungenerous. They can also be attractive to people who have little or no savings and who would not be able to keep going on their own if left high and dry.

Failure to keep up with repayments on a homeloan can badly affect someone’s credit rating. This may mean they find it harder to get credit in future and can also eventually lead to the threat of repossession. This sort of situation can be even more frustrating when it is not the homeowner’s fault, rather they have simply fallen on unlucky circumstances.

A mortgage protection unemployment policy will kick in specifically if someone ends up unemployed through being made involuntarily redundant. It will understandably not protect someone who ends up out of work simply through being sacked, or through taking an offer of redundancy. Following a successful claim, the insurance company will start to pay the policyholder a monthly sum into their bank account. A month must normally expire before the first payment arrives, although some companies will backdate their payments to the first day someone was without work.

Payments will usually protect a percentage of somebody’s monthly homeloan-related outgoings, plus costs like the interest on the homeloan, buildings and contents insurance, and even council tax. Packages normally start at 50 per cent protection, and higher amounts are available for higher premiums. Mortgage protection unemployment policies are not the only types of cover, and other policies will protect against injury and illness, and even if someone has to leave their job in order to become someone’s carer full-time. Simon Burgess is from protection specialists British Insurance. He said: “If times are tight insurance of this type can provide a household with peace of mind, and our policies start from just a few pounds per 100 pounds worth of cover.”

For anyone unfortunate enough to be made redundant, one of the first and most critical budgetary casualties is the mortgage. With the prospects of redundancy being forecast for increasingly wide swathes of the working population, therefore, prudent homeowners are turning to mortgage protection unemployment .

According to government statistics published in The Guardian newspaper on the 15th October, 2008, the number of jobless in this country rose to nearly 1.8 million – its fastest rate of increase in 17 years. As the finance-inspired recession continues to bite into the so-called “real” economy, more and more jobs will be threatened, with an estimated 2 million or more out of work by the end of the year.

As if redundancy is not bad enough, however, many of the people who will find themselves out of a job will also have exhausted their savings simply by trying to make ends meet during a time of rapidly rising costs of living. A report in The Independent newspaper on the 16th of October, for example, revealed that the cost of basic food stuffs alone had risen by more than 14% during the past year. As a result, therefore, few people will have very much in the way of savings to cushion the sudden loss of income that redundancy would bring.

These are precisely the conditions, therefore, in which mortgage protection unemployment would come into its own. Just one variety of payment protection insurance, this particular product will ensure that the major proportion of a mortgage continues to be paid off, even if the policy holder is made compulsorily redundant.

Although the actual limits will vary from insurance policy to insurance policy, mortgage protection unemployment cover can typically cover up to 65% (or a total of £3,000, whichever is less) of monthly mortgage repayments and can even be used to pay the related premiums for mortgage life insurance and home insurance. In many cases, arrangements can be made for the insurance benefits to be paid directly to the mortgage lender in the event of a claim.

One of the country’s leading providers of mortgage protection unemployment solutions is British Insurance and their managing director, Simon Burgess, considers that: “unemployment will be one of the biggest threats facing the working population at least for the next year and probably for some time to come. Few people will have been able to save for ‘rainy day’ funds that could last more than a few weeks, yet the time it could take to secure alternative employment is likely to be rather longer than that. Unless they have some form of mortgage protection, unemployment could deal such a severe blow that repayments get missed and, before long, the lender starts turning his attention to the awful prospect of repossession”.

A mortgage protection unemployment policy could help to save the roof over your head if you were made redundant. A loss of income could mean that you would have to struggle to find the money to keep servicing your mortgage repayments each month and it could take many months to find work again. If you do not keep up with the repayments the lender could take you to court and you could be evicted from your home.

You could take out mortgage protection by insuring up to a certain amount of your monthly mortgage repayment which the provider would pre-agree upon, against redundancy and this would be the sum of money you received back if you became a victim. If you chose to take out the policy with a standalone payment protection provider rather than adding in the protection alongside the mortgage you can save as much as 40% on the premiums. Leading payment protection specialist British Insurance allows you to make this saving on your mortgage protection unemployment policy and they provide insurance that would come with no excess. This means the payments are dated back to day one of you becoming unemployed.

You could make a claim from the 30th day of being unemployed and the protection would then continue to payout for up to 24 months before it expires. This would provide you with money towards maintaining your mortgage repayment while you searched around for work. If you check the protection that other providers offer you would have to compare the small print as some providers could offer to payout for up to 12 months only. Also check to find out when you would be allowed to claim as with some providers this can be up to the 90th day of unemployment.

You would have to check a mortgage protection unemployment policy to find out what exclusions reside in the protection. Ethical specialist British Insurance adds in just a few exclusions but other providers could add in many more. These have to be checked against your circumstances if you want to ensure eligibility before taking on the cover. A mortgage protection policy would be a better plan to fall back onto that risking the State helping you to continue meeting your mortgage repayments. You would have to be eligible to claim an income from the State and even if you were the money you would receive would only go towards up to so much of the interest payments of the mortgage. Mortgage cover goes towards the whole of the repayment. You would also currently have to wait for many months before you would receive any money and by this time you could already be behind on your mortgage repayments.

An alarming statistic appeared in the Daily Mail newspaper in the first half of 2008. This cited evidence from recent research showing that as many as a quarter of all people losing their jobs are likely to face financial disaster within weeks of being unemployed. With no savings to fall back on, one of the first casualties when a regular income has been taken away is the mortgage. With the mortgage unpaid, of course, that can soon lead to repossession of the home and the beginning of a real nightmare. Mortgage protection unemployment cover could prove a lifesaver in such circumstances.

Although the number of people currently out of work in the UK is steadily rising in the wake of the credit crunch, the good news, however, is that mortgage protection in the event of unemployment is remarkably affordable. It works to provide protection for those critical mortgage repayments in a very simple way, too. If the policy holder loses his job through no fault of his own and is made compulsorily redundant, mortgage protection unemployment insurance will simply make up towards a percentage of the mortgage repayments automatically. All that needs to be done, therefore, is to buy a sufficient level of insurance to cover the mortgage repayments – and these then remain entirely protected, even if unemployment strikes.

This type of insurance is just one of a number of so-called payment protection insurances and is most often sold together with cover against the risk of accident and sickness. In other words, the additional risks to mortgage repayments raised by being off work through an accident or sickness can also be covered in a similar way.

But the unemployment element can be purchased as a separate, standalone form of cover. Naturally, this makes it cheaper (about half the price) of the full package and might also prove especially attractive to employees who already share in a company or employer’s scheme that provides adequate cover in the event of accident or sickness.

Like many other forms of insurance, therefore, buying mortgage protection unemployment cover is very much a question of tailoring the product to suit your particular needs.

One of the ways of ensuring that this is achieved is by buying through a specialist, independent insurance provider, such as British Insurance. The company’s managing director, Simon Burgess, says that “it is especially tragic when a homeowner loses their job and the sudden loss of a regular income threatens the loss of the home at the same time. It’s a tragic waste that could so easily have been averted by the purchase of such modestly priced mortgage protection unemployment insurance”.

Times of greater economic uncertainty can often mean people start wondering what action they should take, if any, to minimise the risks to themselves and their families in the event they start to feel the pinch. Newspaper headlines about unstable property prices and rising unemployment can sometimes cause panic but this should not mean a consumer rushes into the wrong sort of action. There are always companies out there waiting to make profit from a crisis and while some have scruples and ethics, others are all the more willing to overcharge or offer a product of poor value. One product phrase which might have cropped up in the minds of people concerned about losing their jobs due to economic instability is mortgage protection unemployment cover.

A range of options are out there for people who want added peace of mind in a more uncertain climate, and finance-related insurance is just one of them. Mortgage protection insurance is a policy aimed at people who are worried about not being able to pay back a home loan because in future they fear they may lose their job through no fault of their own. Redundancy can seem a million miles away one week and just round the corner the next, and people tend to react differently to the threat. Some rely on a possible redundancy package to keep them going, others hope to fall back on savings while others might think their partner will bring in enough cash to keep up with the monthly repayments.

Mortgage protection unemployment insurance is a phrase related to a simple policy, available from a number of providers, which will kick in if someone is made redundant through no fault of their own. An insurer will start to pay out a monthly lump sum after an initial period of unemployment, usually around 30 days. This sum, which is paid into someone’s account tax free, is to go towards the cost of the commitment to the home loan provider. This can continue for a set period, up to around 12-24 months depending on the provider, while the policy holder attempts to find alternative work and tries to get back on their feet. A policy holder can also normally take out broader mortgage protection policies which will also cover their ability to keep up with the mortgage in the event they are left without an income due to long-term sickness or accident for an additional premium.

Many independent insurance firms, such as British Insurance, are no strangers to phrases like mortgage protection unemployment and can save a policyholder 40 per cent on mortgage payment protection insurance policies - a significant slice in times when low cost peace of mind can be worth its weight in gold.

No one can say that their job is a job for life as redundancies happen all the time. Redundancy can happen at anytime and for many it can happen with very little warning. While there is nothing you can do about the fact that you could be made redundant and lose your income, you can at least protect the repayments of your mortgage by taking our mortgage protection unemployment cover.

You would take out the protection by insuring a portion of the monthly mortgage repayment you make which you would pre-agree with the provider of your choice. All providers would set a limit to the amount that you can protect so you must check the terms of the cover on offer. The sum of money that you insure against would be the sum that you would receive back as a tax-free income if you became a victim of redundancy. This sum of money would go towards you being able to maintain the repayments of your mortgage and helps to stop you from falling into arrears.

You would have to wait for a period of time once you had become redundant before you would be able to claim. If you choose ethical payment protection specialist British Insurance this would be from day 30 and there is no excess as British Insurance will date back to the first day of your unemployment. Once you have made a claim you would then have 12 months to find work before the cover would expire. If you choose to shop around and compare with other providers you could find that some will continue paying out for up to 24 months so you would need to check in the terms and conditions. You would also have to check to find out when the policy could be claimed on, as some providers state that you have to wait for up to 90 days of continual unemployment.

When looking into taking out mortgage protection unemployment cover your age and the amount you choose to protect up to the set amount, would go towards determining how much the premiums would be. Age based protection means that even the younger first time home buyers can afford to cover what are often huge borrowings. Without something to fall back on you could be risking everything and mortgage cover does not have to cost a fortune if you choose to take it out with ethical payment protection provider British Insurance. You can save up to as much as 40% on the cost of protection with them when compared with the high street lender.

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.

Mortgage protection unemployment cover can be a lifeline if you were to be made redundant. As redundancies are being announced on a regular basis you do need to give some thought to the possibility that it could happen to you. Without an income coming into the home on a regular basis any redundancy money you had coming in would have to be used towards maintaining your mortgage and it could take many months for you to be able to find work again.

Mortgage protection against unemployment can be taken out by insuring a portion of the mortgage repayment and then claiming this sum back as a tax-free income if you lose your own income. This sum of money would then give peace of mind which would allow to search for work and to find a suitable job that paid the salary you were accustomed to receiving. You would not have to worry about missed mortgage repayments and mortgage arrears. Mortgage arrears which you are unable to catch up on can lead to you losing your home to the lender through repossession. Even one missed payment and the lender would send out a warning letter.

If you choose to shop around for your mortgage payment protection insurance (MPPI) then you can compare the quotes and one of the cheapest would come from ethical payment protection specialists British Insurance. They would provide you with a policy that would be based on the amount you wanted to insure of your mortgage repayment and how old you were when you chose to take on the protection. As policies are based on age this means that the younger you are when you take out cover the cheaper the premiums would be, with British Insurance you could save up to as much as 40% on the premiums.

Your policy would begin to payout the income after you had claimed which could be from the 30th day. Once you had put in your claim you would then have 12 months if you chose British Insurance, in which to find work before the policy would cease to pay. If you check out the terms and conditions of other providers you might find that some will extend the payments to 24 months. you can also check the terms to see when the starting date would be as some providers could ask that you defer from putting in your claim for up to the 90th day of being unemployed.

You would also have to check the terms of any mortgage protection unemployment insurance policy that you were considering taking out. All providers will add in exclusions and these need checking if you want to be sure that you would have a safety net on which to rely.

Becoming unemployed and not being able to maintain the repayments of the mortgage is a big worry. If you are unable to pay them and fall into arrears that you cannot catch up on the lender would have no choice but to start court proceedings against you. Mortgage protection unemployment cover would protect your mortgage repayments and the roof over your head should you become involuntarily redundant.

You can take out  mortgage protection unemployment cover with a standalone provider for far cheaper than you would be able to take it with the lender when borrowing. Lenders on the high street are well known for the £4 billion profits they make from their often high priced payment protection. If you choose ethical provider British Insurance you would save as much as 40% on the cost of protecting your mortgage. You would insure up to a pre-agreed sum of the repayment you make each month and then claim this amount, which would be tax-free, if you lost your income through unemployment.

You would have to wait until the 30th day of being unemployed with British Insurance before you would be able to put in your claim. However on putting in the claim the benefit would be back dated to day one and would then provide you with the much needed income each month for 12 months.
The cost of the premiums would tae into account your age, the level of cover and the amount that you protect. Age based protection would mean that the younger generation can now afford to cover their mortgage repayments.

Mortgage protection against unemployment would be a lifeline to stop the lender seeking possession of your home. During the life of the policy you would not have to worry about falling into arrears which would leave you free to be able to search around for another job. As jobs are scarce it might take some time to find a suitable position but with the policy behind you there would be no problem.

Having the money in the bank to continue servicing the mortgage repayments is essential. Falling behind into mortgage arrears and having no chance of catching up means that you are risking losing your home and everything built up in it. So what would happen if you lose your income due to redundancy? Mortgage protection unemployment cover can be taken for a small premium each month and this would present you with an income which would go a long way towards you being able to keep the repayments of the mortgage going.

Just one missed mortgage payment and the lenders sends out a friendly reminder, miss another and this means going to see them to make an agreement with them to catch up on what you owe while also paying your mortgage instalment. Without an income this would probably be impossible and so they would take you to Court.

Mortgage cover is offered when you take out the mortgage; however you can also choose to take it out at anytime while paying the mortgage. If you choose to go standalone specialist provider British Insurance then you are offered premiums which are age based and this means the younger you are when you apply for the cover the cheaper you will get the protection. Taking a policy independently is usually always cheaper than having it added into the loan. If you have an existing mortgage and are considering taking out protection for the repayments then you are wise to check to see if you already have a policy. Sometimes in the past mortgage cover was added in without the consumer realising it.

You do need to check exclusions to be sure that your circumstances would ensure you were eligible to make a claim before taking cover. With ethical provider British Insurance you can find these on their website. Once you have checked suitability then applying with them is easy and you can save as much as 40% on the cost of the premiums. You can also add additional benefits to your mortgage protection unemployment cover for accident sickness cover too.

Your mortgage protection unemployment  cover begins paying out an income after 30 consecutive days of unemployment or accident or illness depending on the protection you chose. With British Insurance it would payout for up to 12 months and then it would just cease. There are some providers that might ask that you defer from putting in a claim until the 90th day and some would could payout for up to 24 months. By choosing to look around for your mortgage cover with an independent payment protection provider you are assured of getting a policy that is of quality and is backed up with years’ of experience in the sector.