Mortgage protection cover comes cheaper if you buy a policy independently

November 17th, 2008 in Mortgage Protection Cover |

Mortgage protection cover will come a lot cheaper if you buy a policy independently of the mortgage. Lenders will try to get you to take on the protection at the same time as taking out your mortgage but the cost of it will come high. Ethical standalone provider British Insurance will offer savings of as much as 40% on the premiums and great terms.

You choose the amount you want to protect of your monthly mortgage repayment, up to a limit stated by the provider, against accident, sickness or unemployment and then claim this sum back if you fall victim to one of these events. The sum of money would be used towards servicing your mortgage repayments for the period defined in the conditions of the policy and would go a long way towards helping you to remain out of mortgage arrears.

If you choose standalone British Insurance then you can choose the type of mortgage protection cover you need. You can take out accident, sickness and unemployment protection in one policy. However your circumstances might dictate that you only need to insure against unemployment alone or incapacity alone. This will go towards deciding how much the premium would cost you along with how old you are when you apply for cover and the amount of your payment you choose to protect. As the protection is based on your age this means younger first time buyers can now afford to cover their mortgage repayments where previously high costs for cover meant it was out of their reach.

British Insurance offer no excess on their protection as they date the benefit back to day one of you falling sick, suffering an accident or becoming unemployed. A claim on the benefit could be made after just 30 days and payments are received for up to a maximum of 12 months before the cover expires. If you shop around and compare costs of premiums with other providers then check the conditions of the protection policy as there are some providers that offer 24 months of insurance. You also have to find out how long it would be before you could put a claim in as with some providers this might be 90 days at least.

Mortgage protection cover can do an excellent job of helping you to remain in your home as falling into arrears and not having money to catch up would see the mortgage lender taking you to court to claim repossession of your home and have you evicted. The judge might rule in their favour and this would mean you having to leave everything you have built up over the years. Relying on savings could be risky as they might not last for the duration of your unemployment or incapacity. If you believe that the State would step in and help out by providing you with your mortgage repayment then you could also be let down.

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