Mortgage insurance cover can be an excellent back up plan on which to fall back onto if you lost your income after suffering from an accident or an illness or if you were to become redundant. You would insure a pre-agreed sum of your mortgage repayment and this would be the income that you received back, tax-free if you suffered from incapacity or unemployment.

This sum of money could make a great deal of difference to you as it would go towards you being able to continue servicing the repayments of the mortgage. It could mean the difference between you keeping your head above water or falling into arrears and risking losing your home to repossession by the lender. If you were to fall into arrears the lender would expect you to make an agreement with them to pay off the arrears and also assure them that you can maintain the agreed repayments. However without an income coming in you would not be able to assure them of this and they would have no alternative but to take you to court to seek repossession. Your policy could help to stop this and if you take it out with an independent payment protection provider such as British Insurance, you could save as much as 40% on the premiums.

British Insurance would take into account how old you are when you apply for mortgage insurance cover, the amount you choose to cover of the repayment and the type of protection you need. Depending on your circumstances you might not need to take out protection for accident, sickness and unemployment together. British Insurance allows you just to cover against the possibility of losing your income to redundancy or just for incapacity.

You would have to wait for a period of time once you had become unemployed or incapacitated before you would be able to make a claim. With British Insurance this would be 30 days and there is no excess as they back date the protection to day one of you falling ill, suffering an accident or from you being made redundant. Once you has claimed and begun to receive your income British Insurance would supply you with a payment each month for 12 months and then the protection would cease. If you compare the cost of cover with other providers you would have to check their terms and conditions as some providers might supply you with cover that would payout for up to 24 months. However you would need to check the small print to find this out and you would also have to check the terms to see when you would be able to make a claim. Some providers could state that you would have to be unemployed or incapacitated for at least 90 days.

When comparing mortgage insurance cover always check the small print to find out what exclusions there are in the protection. British Insurance includes few exclusions in the cover they offer, but some providers could add in many more. Checking these against your circumstances is imperative if you are to ensure you would be able to benefit from taking out the protection.

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