Mortgage cover can prove to be a very valuable source of protection if you lose your income after becoming incapacitated or unemployed. The policy could be claimed on after so many days and you would have an income that could be relied upon for a period of time before ceasing. This income would go a long way towards ensuring that you did not fall behind into mortgage arrears which can be a threat as they can lead to losing your home.
You can take out mortgage cover after choosing the amount of your monthly repayment you need to protect. This amount is agreed by your provider at the time of you taking out your policy as it is the sum you get back for up to the term if you were to have to claim that long. You might be eligible to make your claim after waiting for just 30 days from suffering one of the events covered. You could however need to wait for up to 90 days with some providers. Benefit could continue over 12 months with some providers and with others you could be eligible to continue claiming an income for up to the 24th month. If you did have to claim up to the term then it would cease once the term had been reached so this would have to be weighed up against the fact that a policy paying out over 24 months would cost more than one paying benefit over 12 months.
You could take out the standard policy for protecting your repayments which would cover unemployment and incapacity together. However if you want to you could take a policy that would provide an income solely if you became redundant or just take cover for incapacity alone. When considering what events are protected in your policy you could also check to see if your provider has been generous enough to give you carer cover. Carer cover would pay out in the event that you had to take time from work to stay home and look after a family member.
Without mortgage cover you could be left with a struggle each month just to find the money for your repayments. This of course would make what was already a very stressful situation even worse. Instead of being able to concentrate on looking for work or making your recovery you would be worried about money instead from month to month. You do of course have to check to find out whether you would be eligible to take cover in the first place as there are exclusions and these could mean the difference between you being eligible to claim and having a claim turned down.
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