Mortgage protection could ease your mortgage worries should you lose your income after becoming unable to work or if you are made redundant. If you suffered either of these events you would still have to keep up with your repayments each month of face the possibility of losing your home to the lender if you fall into arrears that you cannot catch up on. With a policy behind you there would be less chance of this happening as you would have money towards keeping the repayments up to date.
You could search around with independent providers and compare the premiums for the cheapest. This way you could save around 40% on the cost of your policy. The premiums would be decided for one thing on the amount of your mortgage repayment you wanted to cover. This amount would need to be pre-agreed by your chosen provider and then is the amount of monthly income towards your repayment and it is paid tax free. You might need to wait for a period of up to 90 days with some providers before making a claim for your income and with others you might be able to claim your income from after the 30th day. You could be eligible to claim an income for up to 12 months with some providers and with others it could be 24 months of benefit if needed before the policy ceased.
Should you be offered a mortgage payment protection insurance policy that paid out over 24 months then you would need to pay more in monthly premiums. You also have to take into account that 12 months can be more time than needed for you to have made a recovery and have been able to get back to work or it could be enough time for you to have recovered. However once the term had been reached it would cease at that time, if you should have to claim for that length of time of course.
Mortgage protection can be taken out to protect against unemployment and incapacity together. You would be eligible to claim against either event in this case. However you might just choose to protect against incapacity alone or you could take out a policy that would payout in the event that you became a victim to redundancy alone. Your provider if they are generous could also give you carer cover in your policy. If this is the case then you could claim on your insurance if you were to have to give up work to take care of a loved one that became incapacitated.
Finally always check the terms of any mortgage protection policy you are considering taking out to find out what exclusions there are in the cover. All providers will add in some and some more than others, these have to be checked against your lifestyle so that you know you would be eligible to make a claim. For instance you would have to be working full time and have been doing so for so long which would depend on your provider.
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