Mortgage protection could help you to maintain your repayments if you lost your income as the result of being made redundant or through incapacity. Without protection behind you a struggle could ensue to keep your mortgage repayments up to date. Fall back on them and you could end up losing your home if you cannot catch up within a reasonable amount of time. A policy would provide an income that would greatly ease your chances of falling behind on you repayments and so the threat of arrears and repossession is diminished.
You could take your mortgage protection after shopping round and comparing for the cheapest premiums. Standalone providers online generally offer some of the best deals on a policy as high street lenders usually charge way over the odds. You could save up to 40% on the cost of your policy with an independent provider. How much you choose to protect is taken into account as this would be your income if a claim had to be made. You might need to wait for up to 30 days with some providers and with others it could be as long as day 90 of redundancy or incapacity before you can make your claim. You might get a monthly tax free sum for up to 12 months or your policy benefit could continue for as long as 24 months with other providers.
90 days wait before seeing any money could mean 3 months of arrears already so you might want to ensure you could claim sooner. You would also need to pay more each month in premiums if your policy paid out over the longer term.
Another factor that providers take into account towards the cost of the insurance is the events chosen to protect. You could take out a policy that would allow you to make a claim for either of the event. You might just want to take insurance for redundancy alone or you could choose to take out a policy that would pay out in the event that you became incapacitated and unable to work. Depending on the provider you might also have carer cover in the policy. Carer cover would allow you to claim on your policy if you had to stop working full time in order to stay home and take care of a close family member. However, only the most generous of providers will give you this form of additional protection, so you would have to check.
Finally it is essential that you do check the exclusions in any policy you are considering taking out as they could stop you from being eligible to claim your benefit. For instances you would generally have to be in full time work, not part time and you would need to have been working for a period of around 6 months at least before taking out your policy. You should also live in the UK, Channel Isles or the Isle of Man in order to take out mortgage payment protection. The amount of exclusions to be found in a policy would depend on the provider with some adding in more than others so always compare the amount of exclusions before taking out your policy.
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