Having a mortgage protection insurance UK policy may be the only thing that keeps you from being homeless or facing financial ruin if you were to lose your job. This is especially true if you have no savings or investments to rely on. If your salaried income was to suddenly disappear how will you take care of yourself and your loved ones?
By protecting your income with a protection policy you can look forward to many benefits which include the following:
You will receive a tax free payment each month which can be used to pay your bills. If your policy is provided by your mortgage provider and is linked directly to your mortgage then the payment may only cover this debt.
Other providers may cover you for the mortgage payments and other associated bills such as home insurance etc.
The main benefit of a mortgage protection insurance UK policy is the peace of mind you will receive. Your home is the most valuable asset you have. It has both financial and sentimental value and the last thing you want is to lose it. So having a policy will ensure that even when you don’t have a salaried income you’ll still have a roof over your head.
Main Features
This policy will pay the benefit for a maximum of 12-24 months depending on the provider or until you return to work if that is sooner.
Before making a claim you will have to wait out the provider’s deferment period which could be from 30 – 90 days.
The benefit levels are capped so you won’t be covered for your full salaried income, instead a percentage of your gross salary will serve as the benefit.
A mortgage protection insurance UK policy will only pay out if you are unable to work due to redundancy accident or sickness in other words in the event of involuntary unemployment.
When evaluating your options for your protection policy, don’t forget to see what the independent companies have to offer. More often than not you will find their premiums are much lower than with your mortgage provider or even the high street companies.
British Insurance is one such independent provider of mortgage protection products and they can offer a savings of up to 40%.
Conclusion
Owning a home is one of the main goals in life and once you’ve achieved this goal you will do whatever it takes to keep your home in your hands. Having a mortgage protection insurance UK policy is just another way to do this. This policy will ensure you keep up your mortgage payments even when your salaried income is no longer available.
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