If you fell ill, were involved in an accident or became a victim of redundancy would you be able to manage without mortgage payment protection insurance to fall back on? Savings could run out if these are your back up plan and a State income would only provide help towards keeping the interest repaid. Payment protection on the other hand would supply the income you agree with the provider, which is so much of your mortgage repayment, for a set period of time once you had passed the deferment period.
Some providers will set the deferment period at 30 days, others could state 90 days. Once this amount of time had passed you would be free to claim on your policy and get benefit in tax free payments. Your income would then be used towards servicing your mortgage repayments each month which would go a long way towards ensuring that you would not be at risk of losing your home. Just as the terms of when you can claim differ then so does how long you would be able to benefit from the policy. With some providers you could claim an income for 12 months and with others it might be as long as 24 months before the policy expires. Should you take cover that offers benefit over 24 months you would have to pay more in premiums than if you were relying on 12 months of benefit.
Mortgage payment protection insurance can be taken to suit your lifestyle. You can choose to protect against both incapacity and redundancy in the one policy. However you could just choose to insure against redundancy alone or incapacity alone if this suits your needs better. If you have chosen a generous provider then you might have carer cover in your policy and make a claim if a loved one became incapacitated. You would be eligible to claim on the policy and receive the income you chose to cover at the time of taking out your protection.
Your mortgage payment protection insurance would come with some exclusions which should be checked before taking out the policy. There could be just the most common exclusions or there might be many more depending on your provider. You would need to be living in the United Kingdom, the Channel Isles or Isle of Man to make a claim. You would also have to be working in a full time position and have been doing so for a period of at least 6 month before taking out your policy. Checking these against your circumstances is crucial if you are to ensure you would be able to make a claim.
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