Jobs are not for life these days with redundancies occurring all the time even in industries that were once thought to be some of the safest. If you have a mortgage hanging over your head for many years then thought should be given to how you would be able to keep them up if you were made redundant. There are basically three options you could choose from which would allow you to be able to keep up with the repayments. Savings, State benefit and mortgage protection unemployment.

The problem with relying on savings or State benefits is that savings could run out and you might not be eligible for State benefits. Even if you are eligible then you would only get help with the interest part of the mortgage and only up to a certain amount. Mortgage payment protection also has some conditions that have to be met, but once you have checked them against your circumstances you can be sure that you would be able to claim if and when needed.

You do have to wait a certain length of time before claiming on the cover after becoming unemployed. Usually it is between days 30 and 90 and some providers such as ethical British Insurance would backdate to the first day of you being made redundant. They also offer some of the biggest savings, in some cases this can be up to 40%. You would then receive a tax-free payment for between 12 months and 24 months and then the policy would stop.

Mortgage protection would allow you to concentrate on looking around for work again without the worry of getting into arrears. Mortgage arrears need to be avoided at all costs as these often lead to the lender taking possession of your home. While the majority will offer to make an arrangement to pay back the arrears and continue paying your mortgage, if you do not have an income this would not be possible. You would be able to continue meeting the demands from the sum you insured against which would be the repayment or up to so much set out by the provider. The amount you cover, your age and level of cover determines the cost of mortgage payment protection. If you want you are also able to cover accident and sickness for a little more each month for total protection. Age based protection is excellent for first time younger home buyers who have little money to play with as their age is on their side.

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