Mortgage payment protection would help to keep your repayments maintained if you became unemployed or incapacitated as the policy would provide you with an income each month for up to the term of the policy which was tax free. You might take your policy with an independent provider and this could lead to some of the biggest savings on your premiums each month.
There would be a certain amount of time that you have to wait before making a claim if you were to become redundant or incapacitated. There could be a deferment period of 30 days and with other providers a claim could be made once you have been unemployed for 60 or 90 days. Some might also date back your benefit to the first day that you lost your income but you would have to check with the provider. You could continue to claim on the policy for as long as 12 months or some providers might extend this to 24 months. If you were able to claim on the policy you would have to pay more each month for the premiums as of course you could have benefits for twice as long if it were needed.
You would be able to tailor your mortgage payment protection insurance (MPPI) policy to suit your needs if you did not want a policy that would allow you to claim for either redundancy or incapacity in the same policy. You could just choose to take your policy in case you were made redundant or you might choose just to take out your policy out to protect against incapacity alone. This could save you money as you would just be paying out for the insurance that you want and need. Depending on your provider you could also be eligible to claim an income if you were to have to give up your full time work to remain at home and take care of a family member who should become incapacitated and need nursing back to health.
You do have to check your policy to ensure that you would be eligible to claim on your policy. There are exclusions which would have to be matched against your circumstances and these could stop you from being able to make a claim on the policy. For instance working full time would be essential and you need to have been working full time for so many months at the time that you applied for the policy.
Mortgage payment protection can be a far better form of security for your mortgage repayments than turning to the State to claim an income. State benefits could be claimed if you were eligible but you do have to take into account that any money you might receive would only go towards you being able to maintain the interest part of the mortgage repayment. You would also have to wait for the first 13 weeks before being able to make a claim and of course by this time you might already be in arrears by some 3 months at this time.
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