Mortgage protection insurance helps pay your mortgage if incapacitated or unemployed

Incapacitation can occur as a result of an accident or if you become ill. If you are unable to work for several months then you could be left struggling to find the income needed to continue meeting your mortgage repayments. If unemployed then it could take several months before you found a suitable position, as jobs are not easy to come by and again you could struggle to pay the mortgage each month. Mortgage protection insurance helps you to pay your mortgage in both of these circumstances once you have been unemployed or incapacitated for a certain length of time.

Mortgage payment protection can be offered when you take out the borrowing. However you can get a far cheaper policy if you choose to take out the protection independently. A specialist in payment protection would be able to offer cheaper premiums. Standalone payment protection provider British Insurance for instance offers cover for up to 40% cheaper than the high street lender.

You would have to wait a number of days before you could put in your claim and this varies on the provider. Some such as British Insurance would pay from day 30 of you becoming unemployed or incapacitated. Others might not payout until the 90th day, some will backdate your benefit to the first day of you being unfit for work or of being unemployed. Policies payout for a certain length of time also and again this depends on the provider. Usually cover would provide between 12 monthly payments and 24. You have to check the terms and conditions before you take out the cover to be sure.

Mortgage protection insurance is a very valuable form of cover as it ensures that you are able to maintain your repayments. If you fall behind by just a single payment the lender will be in touch to find out when you are able to catch up. If you cannot make an agreement with them or cannot stick to it and continue to miss payments then they will take you to court.

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