Mortgage unemployment insurance cover brings financial security for a large portion of your monthly mortgage repayment. Redundancies happen and sometimes they come with very little warning. If you were to lose your own income your policy would provide you money that would help to keep you out of mortgage arrears and so not risk being repossessed by the lender.

One of the ways you can take out mortgage unemployment insurance cover is to shop around and compare the cost with an independent provider. When taking a policy this way you can make some huge savings on your cover in comparison to taking out a policy with the lender on the high street. To take your policy with an independent provider you first have to decide how much of your mortgage repayment you want to protect. This goes towards setting how much you pay for your policy and is also the sum you would be able to claim back, tax free each month should you need to make a claim. All providers will set a limit as to the amount you can protect so the provider would have to pre-agree to your chosen sum. You might have to wait for 30 days before you make a claim but with other providers you could have to stand to up to 90 days before a claim could be made. Some providers will offer to date back the benefit to the first day of your becoming unemployed and this would have to be checked in the terms before you take out a policy. Your benefit might then pay out for 12 months if needed or with some providers you could claim an income for up to 24 months.

Some providers will take age into account when setting the cost of protection so check for this too. This means the younger you are when you apply for the policy the cheaper you would get your cover.

When comparing the terms of any policy you are considering you should take into account that 90 days can be a long time to wait before you would see any benefit from your policy. By this time arrears of 3 months could have already built up and of course this could be very stressful. You should also consider the fact that if the provider offered to pay out your benefit for 24 months you would have to pay more in premiums.

While you can just take mortgage unemployment insurance cover and be protected against redundancy you could pay out a little more in premiums and have protection against incapacity too. When looking at policies check to see if the provider offered carer cover in their policy. Carer cover would payout an income for the term of the cover to the policyholder if they were to have to stay home and care for a loved one who became sick or suffered an accident. Generous providers will include this form of cover which would provide relief and means you would not have to pay out to have someone come into the home to take care of your loved one.

As the economy stands at the moment redundancies are a huge risk. Companies that have been around for centuries are closing their doors and individuals find themselves out of work and with commitments such as their monthly mortgage repayments to continue meeting. Anyone in this situation is at risk of the lender repossessing if mortgage arrears cannot be caught up with and so arrears are a huge risk. One cannot rely on the State to take over mortgage repayments and savings could also be a letdown as they might not last the duration of your unemployment. Mortgage unemployment insurance however would be there for you if you were to lose your job and it would provide a substantial sum of money towards you being able to continue servicing your monthly repayments.

You could choose how much of your mortgage repayment to protect against the possibility of redundancy and this sum would need to be agreed by the provider as it is the amount you get back if you need to claim. The payments are given tax free each month you continue to remain unemployed for the term set by the provider. Usually this would be for either 12 months or 24 after waiting for a deferment period of between 30 and 90 days. Some providers back date their cover to the first day that you were made redundant and this should be checked in the terms offered by the provider when applying for cover.

You could be able to choose whether to cover your repayments for 12 or 24 months but you would have to take into consideration that a 24 month policy would cost more than one paying 12 payments. You also have to weigh up that 12 months is a long time and you could have found work or recovered well before then. However at the same time the policy would cease upon reaching its term even if you were still unemployed.

While you can just take mortgage unemployment insurance you could also consider taking out unemployment and incapacity cover for just a little more in premiums each month. In this case you would have protection against redundancy but you would also have peace of mind that if you suffered an accident or illness you would still be able to make a claim. It is also worth nothing that you could alternatively choose just to take protection against incapacity alone if this suited your circumstances better. Whichever form of mortgage insurance you do decide is the most suitable you would at least have a substantial amount towards being able to maintain your repayments for the term of the cover.

Mortgage unemployment insurance would provide you with an income that could help you to maintain the repayments of your mortgage if you lost your job to redundancy. Redundancies can happen often with very little warning which means your life can be thrown into turmoil and one of the many worries you will have at this time is your mortgage repayments. With protection behind you there would be something to fall back onto in your time of need which would allow you to concentrate on searching for work.

You do have the choice of being able to shop around for your mortgage unemployment insurance. By choosing to take your policy out with the independent payment protection provider you can make a great deal of savings on your policy and be in total control of your cover. You would be able to choose how much of your mortgage repayment you wanted to protect against unemployment.

Your chosen amount is pre-agreed with the provider at the time of taking out the cover and is then the amount that you get back each month should you need to claim on the policy after being made redundant. You would need to have been unemployed for a certain period of time before making a claim on your insurance and this is usually between the 30th and the 90th day of your unemployment. Once protection had begun to provide you with your income it would continue to do so for a period of either 12 months or 24 months depending on your chosen provider. After the term has been reached the policy then ceases.

You could choose to take out a policy to protect solely against unemployment. However you could also give some thought to paying a little extra and having protection against both unemployment and incapacity together.

The substantial sum of money provided from the policy would go a long way towards you being able to maintain your repayments during your unemployment. Keeping ahead with your mortgage is essential if you do not want the worry of falling into arrears with your mortgage repayments. Mortgage arrears of just a few months could be all that is needed for the lender to take you to court if you are unable to catch up on the missed repayments. While lenders will usually allow you to make some kind of agreement to repay what you owe, without an income coming into the home this could be impossible. If you are taken to court and the judge sides with the lender then you could be given an eviction date and have to leave your home. Mortgage unemployment insurance can ease all of these worries.

Mortgage unemployment insurance can help to secure your repayments if you become a statistic of redundancy. If you fall victim to redundancy the mortgage lender would still expect you to maintain your repayments despite the fact you are without an income. Without mortgage cover to fall back onto where would you get the money to service your repayments each month?

To take out mortgage unemployment insurance you choose the amount of your monthly payment to protect. This amount is pre-agreed by the provider you opt to take your protection from and is then paid back tax free should you suffer unemployment caused by redundancy. To claim on your policy you would have to have been unemployed for a certain period of time which is generally in the region of 30 to 90 days. Some providers will backdate their protection to the first day that you became unemployed so you would need to check this in the terms and conditions. Once you have made a successful claim on the protection you then receive your income each month for the period of time set by the provider. This would usually be either 12 months or 24 depending on your chosen provider.

While you can just protect against redundancy you can also choose the events you wanted to protect against. You can choose to protect against both incapacity and redundancy in the same policy for a little more than just protecting against unemployment.

If you did not want protection against unemployment then you could just take protection for incapacity alone. The level you decide to take out goes towards setting the premium as would how old you are when you apply for cover and the amount of your repayment chosen to protect.

Mortgage unemployment insurance can be a valuable asset to have in your corner if you do lose your income. Of course you may consider savings to be your back up plan. However you do need to take into account that it could take you many months to find a suitable job. With this in mind savings might be a bit of a gamble as to whether they would last. If they did not then you would again be faced with the struggle of finding the money to maintain your repayments. Relying on being eligible to claim your mortgage money from the State could also be a letdown. You would have to prove eligibility and even if you should be able to claim the money received would only go towards servicing the interest part of your mortgage repayment, up to so much. Currently you would also need to wait several weeks before seeing any money which of course could mean you would already be in mortgage arrears.

Mortgage unemployment insurance would give you repayment peace of mind if you should lose your regular monthly income after being made redundant. The policy would pay an income which would be the amount you chose to protect and which would be pre-agreed by the provider. The income would be tax free each month for either 12 months or 24 depending on the provider after a deferment period of between 30 and 90 days of unemployment.

With mortgage unemployment insurance behind you there would be a substantial amount of money coming into your home which would be there for you to meet your mortgage repayment. It is essential that you can maintain your repayments each month so that you can remain out of mortgage arrears. If you miss just a single mortgage repayment you would be reminded by your mortgage lender about the missed payment and be expected to catch up on it. However this could just be the start of a downward slide into mortgage arrears. If you were to continue missing repayments you would almost certainly have to meet with the mortgage lender. The majority will allow you to make an agreement with them for you to pay off your mortgage arrears.

However if this is not possible the only alternative they would have would be to take court proceedings against you to repossess and sell your home.
With protection behind you there would be less worry of any of this happening to you. You would not have to worry about making drastic changes to your lifestyle in order to be able to find the much needed money each month. The money would be there for you and would allow you to concentrate on looking around for work and securing a position.

Of course when you take out your mortgage with the lender they will usually ask if you want mortgage unemployment insurance and in some cases cover has been included in with the mortgage without the consumer knowing. This was brought to light in 2005 after the Office of Fair Trading looked into a super complaint made by the Citizens Advice about mis-selling. Mis-selling ranged from selling cover to those working part time to individuals with pre-existing medical conditions. Fines were handed out and recommendations made for selling. Meanwhile the Competition Commission began a review of the whole of the payment protection sector the results of which have now been announced. As a result there will be more changes in the future with one of them being a ban on selling payment protection with credit agreements. The lender would have to stand to a period of 7 days before then asking the consumer if they want to take out protection for their repayments.

Mortgage unemployment insurance could mean the difference between you losing your home or keeping it if you suffered a loss of income. A loss of income that was brought about through redundancy would be devastating if you had mortgage demands to meet each month. Often redundancy can happen with very little warning which means you could be left struggling to continue meeting the demands of your mortgage repayments.

You could choose the amount of mortgage unemployment insurance you want with an independent provider. The amount you choose to insure would be agreed upon by the provider and this is the sum of money you get back if you were to have to make a claim due redundancy. The income is paid each month for the term offered by the provider and is tax free.

Some providers will state that you need to have been unemployed for a period of 30 days before you can make a claim on the mortgage payment protection insurance. Other providers could state that you need to wait for up to 90 days before claiming. You would also need to check out the small print to find out if the provider offers to pay back to the first day of redundancy as some do.

You could take protection at the same time as taking out your mortgage with the high street lender. However by taking a policy this way usually the protection is worked out over the whole term of the mortgage and then added into the amount you borrow. This means that you will be paying interest in the protection along with the amount you borrow which could boost up this amount considerably.

The income from your policy would then go a long way towards you being able to manage to maintain your monthly mortgage repayments. This would give you peace of mind that you would not fall into mortgage arrears. Mortgage arrears are the worst nightmare of any homeowner as if you miss just one single repayment the lender will send out a reminder and expect you to catch up on the missed payment. If you should continue to miss more payments the lender will usually allow you to make an agreement with them to catch up on what you owe. However without an income making such an agreement would not be possible. The lender would therefore have no alternative but to take you to court to seek repossession of your home.

While you can take out mortgage unemployment insurance you could also choose to take out protection for incapacity too. Mortgage payment protection taken this way would then payout if you lost your income to either event just by paying a little more in the premiums each month.

Mortgage unemployment insurance has never been more important a precaution than it is now and, for many, it could prove a real lifesaver. As the number of declared redundancies continues to rise month after month, those homeowners with a mortgage to pay face the devastating prospect of losing not only a job, but their home along with it, as the arrears begin to rack up and repossession looms.

Government statistics suggest that some 2 million Britons will be out of work by the end of the year. Reporting them on the 17th of December 2008, for example, The Independent newspaper attributed to the general secretary of the TUC, Brendan Barber, the comment that: “These figures show the awful human cost of the financial crash … The Government’s number one priority must now be on getting these people back to work and ensuring they do not face financial devastation while on the dole”.

In a separate report of the same date, The Independent also forecast that the worst of the job losses is yet to come and cited the Labour Force Survey’s opinion that many firms were holding off redundancies until after the Christmas holidays, but that: “It is going to get bloody in January and February”.

For it’s part, the government has indeed underwritten a scheme granting struggling homeowners mortgage interest “holidays” of up to two years to ease the financial devastation faced by those made redundant, but it remains uncertain just how effective such measures will be in averting repossession or simply delaying it.

With the prospects of continued employment for so many people as bleak as this, it is little wonder that there is a current upsurge in enquiries about the sort of measures which worried homeowners can themselves take to avert the disaster of missed or delayed mortgage repayments. Happily, those measures are readily available in the shape of mortgage unemployment insurance – a simple and straight forward level of cover which ensures that the mortgage repayments continue to be met if the worst should happen and redundancy strikes.

Simon Burgess, the managing director of British Insurance, one of the leading providers of such cover, captures the current mood when he says: “there’s very good reason to be worried about the future security of just about any job at the moment and, of course, what concerns the majority of homeowners is how on earth the mortgage gets paid if theirs is one of the jobs to be lost. Mortgage unemployment insurance provides a low-cost, yet very effective lifesaver in the event of redundancy since it can cover all or part of the monthly commitment and, so, safely banish further worries about at least this aspect of the household budget”.

A mortgage unemployment insurance policy would guard against the possibility of you being made redundant. While it would not of course stop you from being made redundant, it would at least give you an income with which to continue maintaining your monthly mortgage repayments. Being able to maintain them is essential to ensure that you keep the roof over your head whilst looking around for work.

One of the cheapest ways of taking out a mortgage unemployment insurance policy is to get quotes with a standalone payment protection provider. One of the cheapest will come from ethical leading payment specialist British Insurance. They offer cover that comes with savings of as much as 40% in comparison with the amount the high street lender could charge. Along with offering you savings on your insurance you would also be able to get access to all the information needed to ensure a policy would be suitable. British Insurance also includes just the most common exclusions in their cover.

Your mortgage unemployment insurance policy with British Insurance would begin to supply you with a policy after the 30th day of your redundancy. You would then have a period of 12 months in which to go out and search for work while receiving a payment each month, and then cover would expire. A policy would greatly ease the worry of where you would find the much needed money to continue servicing your mortgage repayment during your unemployment. Without having something behind you to fall back onto you could find life very hard.

If looking around and comparing the cost of cover then check to see when the provider pays out as with some it can be up to the 90th day. You also need to find out how long the policy would last as with some providers it could be 24 months. Also check the different exclusions included in the cover.

If you are relying on being able to claim an income from the State and believe you do not need to take out a mortgage unemployment insurance policy, then you could be let down. Firstly you would need to be eligible to claim from the State. There is a lot of criteria that would need to be met and the first would be that you did not have savings over a certain amount in the bank. If you have redundancy money then this could mean you would have to pay your mortgage repayments out of this. Even if you were entitled to receive State benefits towards your mortgage repayments, you would only get the interest part taken into account and up to so much. You also currently have to wait for several weeks before seeing any benefit.

As the combined credit crunch and recession tighten their grip on the economy two main fears stalk the land in terms of personal finance – keeping up the mortgage repayments to avoid repossession of the home and losing a job through enforced redundancy. Unemployment and repossession go together in many people’s minds, yet one need not necessarily follow the other and mortgage unemployment insurance can avert the catastrophe of repossession.

There is good reason to worry about unemployment. Although the government is understandably reluctant to forecast just how far unemployment might rise, many analysts seem resigned to it passing the critical milestone of 3 million in the next year or so. Three million is the figure cited, for example, in the Telegraph newspaper on the 25th of November 2008, and presses home the point that very few jobs in the current economic climate can be considered entirely safe and secure.

For anyone with a mortgage to pay, of course, the prospect of redundancy is bad news indeed. With incomes already sorely stretched, very few people have the resources to maintain “rainy day” savings of any consequence, so the loss of a job means no practical way of continuing to pay all the monthly household bills, including the mortgage repayments.

Missed mortgage repayments, of course, will sooner or later lead to the mortgage lender seeking repossession of the home. Although lenders have recently bowed to government pressure to treat defaulting borrowers sympathetically and delay commencing repossession proceedings until they have been in arrears for at least three months, this provides little positive comfort. The debt remains and a period of unemployment, with no money coming in, means that the accumulated debt will often be extremely difficult to clear even when alternative employment is found.

Mortgage unemployment insurance, however, can provide a guarantee that either the whole or a large proportion of the mortgage continues to be repaid even if the policy holder is made compulsorily redundant. No mortgage debt accumulates while the policy holder is out of work looking for a new job, because the repayments continue to be made on a monthly basis, directly to the mortgage lender if needs be. Most policies will allow up to 75% of the policy holder’s normally earned income, or £3,000 a month, whichever is the lesser figure, to be covered in this way and benefits continue to be payable until a return to new employment or after a typical maximum of 12 months (although some policies offer the option of extending this to 24 months, on payment of an additional insurance premium).

As Simon Burgess of one of the country’s leading mortgage unemployment insurance providers, British Insurance, puts it: “this modestly priced insurance won’t actually prevent you from losing your job, of course, but it will considerably allay the financial worries that come in the wake of redundancy”.

http://www.telegraph.co.uk/finance/financetopics/budget/3520798/Pre-budget-report-Unemployed-on-benefits-to-increase-by-550000-in-two-years.html

If you take the time out to shop around and compare a mortgage unemployment insurance policy it will lead to you making the biggest savings. One of the best ways to compare the cost of insurance is to search online. By searching online with independent payment protection specialists you could save up to as much as 40% on the premiums if you get a quote from specialist British Insurance. British Insurance is a leading payment protection provider who not only sells quality products but also provides the key facts of their cover to ensure that you make an informed decision.

When you take out a mortgage unemployment insurance policy you will cover up to so much of your monthly mortgage repayment against unemployment caused by redundancy. If you then become a victim and lose your income as the result of unemployment you would then claim on your mortgage insurance.

There is always a period of waiting which is known as the deferment period. This would differ between providers but if you choose ethical British Insurance it would be from the 30th day. British Insurance would then supply you with an income for up to a maximum of 12 months. The income you received back from your mortgage unemployment insurance policy would then go towards stopping you from falling into mortgage arrears. Of course the policy might not supply you with the whole of your monthly mortgage repayment, but it would go towards the biggest portion of it.

If you had nothing to fall back onto you could have a severe struggle on your hands to find your mortgage repayment each month. It could take several months before you recovered enough to get back to work and it could also take this time to find work. During this time you would have several months of mortgage repayments that have fallen into arrears. Usually well before this time your mortgage lender would have got in touch with you and asked you to catch up on the arrears. Without the income to do so they could start proceedings to take you to court and repossess.

You could of course consider applying to the State to provide the income so you are able to meet the demands of your mortgage. However you would have to be eligible and you would only get the interest part of the mortgage repayment. You would also have to wait several weeks currently before you would receive any money. A mortgage unemployment insurance policy on the other hand would at least provide you with money towards the repayment for its term.