Mortgage cover can give an individual the much-needed money to allow them to continue meeting the demands of their repayments if that individual should become unable to work after being involved in an accident or was to become ill. It would also payout if the policyholder were to become unemployed after being made redundant.
There are a few exclusions which are to be generally found in all policies and these include being of retirement age, being self-employed, suffering an illness that is pre-existing or only working on a part-time basis. Providers can add-in others so checking the terms and conditions are imperative before taking on the cover.
Very often mortgage cover is offered at the time of borrowing with the high street lender and in some cases, the high street lender would have the consumer believe that their mortgage relies on them taking out the protection at the same time. While some lenders might ask that you do protect the money you are borrowing, you can choose to search for the policy yourself and take it independently.
By choosing to shop around for cover, you will be able to get the cheapest possible premiums. One of the cheapest is with ethical British Insurance. They offer mortgage cover that could save the homeowner up to 40%. They also provide all the information needed to determine that cover is suitable and as mortgage protection can be confusing and there are exclusions having access to this information is essential.
A policy taken with British Insurance would begin to provide a tax-free income once the policyholder has been out of work for 31 days. The policy would be backdated to the first day of unemployment or of being declared unfit for work and would then continue for up to 12 months. Some providers will extend the policy to payout for up to 24 months but you might have to wait for up to 90 days before claiming. The premiums would be higher than a standard 12-month policy too.
If you are considering taking out mortgage cover then you can choose between different levels of cover. If you wish to just take out a policy to insure against the fact that you might become unemployed then you can. If you are worried about losing your income due to suffering an illness or an accident, you are also able to purchase this separately or you can choose to cover against all three. The premium for protection is decided on how much you want to protect each month, the level of cover and your age at the time of applying.
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