Mortgage payment protection could provide you with security against a lost income providing you have checked for suitability at the time of taking out the policy. The whole of aim of a policy is to provide you with a sum of money after you had been unemployed or incapacitated for a certain amount of time. This income would be used towards you servicing your repayments for up to a certain amount of time. The terms have to be considered and checked at the time of applying.

With some providers you could have to stand to the first 30 days from the first day of suffering one of the events that you had chosen to take mortgage payment protection against. With others there could be a deferment period of up to 60 or 90 days and then you could claim. Some providers might date back your income to the first day of you suffering one of the events but this too would have to be checked in the terms offered by the provider. You could continue to receive your income for up to as long as the 12th month or you might continue to get your income for as long as the 24th month. Were you to have to claim for up to the term of the policy then it would cease at this time.

Should you have a policy that paid out for over the longer term then you do have to pay out more for the monthly premiums? You should also consider the fact that if you were to have to wait for up to the 90th day then mortgage arrears could already have built up which could cause considerable worry.

If you are unable to catch up on any amount of mortgage arrears there would be the risk of the lender taking you to court and you could eventually lose your home. Your policy could go a long way towards ensuring that you would not suffer arrears which brings a great deal peace of mind.

As mentioned briefly there are some exclusions which need to be checked against your lifestyle. For instance generally you would have to be working full time and you would need to have been in a full time position for a period of time when applying for the policy. The exclusions could differ with providers so along with checking them against your lifestyle you would also have to compare with providers.

You might take out mortgage payment protection to protect against both events. Should you have a sick pay plan to rely on then you could just protect your repayments against redundancy alone. You might alternatively chose just to take out a policy that would protect against incapacity alone if you knew that you would have enough money to service your repayments whilst looking for work after being made redundant.

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