If you have mortgage repayments to make each month then it can make sense to consider taking a mortgage payment protection insurance UK policy out. A policy is taken to ensure that if you should become unemployed through such as falling sick or suffering an accident or if you were to become a victim of redundancy you would have an income. This income would go towards you being able to maintain your mortgage repayments each month which would ensure you would not fall behind on the repayments and into mortgage arrears.
How much you would have to pay each month for a mortgage payment protection insurance UK policy would be based on your age when applying for the policy, the events you choose to cover and the amount of your mortgage repayment you choose to protect. The amount is pre-agreed with the provider and it is the tax free income you get back each month if you become a victim to one of the event insured against. There would be a period of time that you would have to wait before being eligible to make a claim and this would generally be for either 30 or 90 days and would have to be checked at the time of comparing the cost of the cover. You also need to check how long the payments would continue as with some providers it can be 12 months and with others it could be up to 24 months. However 24 months of protection would generally cost more in premiums as the payments last twice as long. 12 months can be more than enough time to have made a recovery or to have found work.
A policy can be a more viable option as a safety net than applying for an income from the State while you are unemployed or incapacitated. You would have to prove that you were eligible to claim State benefits and even if you were the income you would be entitled to receive would only go towards paying some of the interest on your mortgage. You would also have to wait before seeing any money from the State and currently this is 13 weeks from applying. This means that you would already be in mortgage arrears by 3 months and this could add a great deal of stress onto what is already a very stressful situation.
With a mortgage payment protection insurance UK policy to fall back onto you would not have to worry about struggling to maintain your repayments each month. Mortgage arrears can be easy to fall into but harder to break free of even when you some money coming in the home. If you do not have an income coming in then it can be impossible to catch up on your arrears and this can lead to you losing your home to repossession. For just a small premium each month you would have peace of mind by knowing the exact amount you were entitled to receive, when you could claim and for how long you would be able to rely on the payments.
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