Mortgage unemployment insurance would provide you with an income that could help you to maintain the repayments of your mortgage if you lost your job to redundancy. Redundancies can happen often with very little warning which means your life can be thrown into turmoil and one of the many worries you will have at this time is your mortgage repayments. With protection behind you there would be something to fall back onto in your time of need which would allow you to concentrate on searching for work.

You do have the choice of being able to shop around for your mortgage unemployment insurance. By choosing to take your policy out with the independent payment protection provider you can make a great deal of savings on your policy and be in total control of your cover. You would be able to choose how much of your mortgage repayment you wanted to protect against unemployment.

Your chosen amount is pre-agreed with the provider at the time of taking out the cover and is then the amount that you get back each month should you need to claim on the policy after being made redundant. You would need to have been unemployed for a certain period of time before making a claim on your insurance and this is usually between the 30th and the 90th day of your unemployment. Once protection had begun to provide you with your income it would continue to do so for a period of either 12 months or 24 months depending on your chosen provider. After the term has been reached the policy then ceases.

You could choose to take out a policy to protect solely against unemployment. However you could also give some thought to paying a little extra and having protection against both unemployment and incapacity together.

The substantial sum of money provided from the policy would go a long way towards you being able to maintain your repayments during your unemployment. Keeping ahead with your mortgage is essential if you do not want the worry of falling into arrears with your mortgage repayments. Mortgage arrears of just a few months could be all that is needed for the lender to take you to court if you are unable to catch up on the missed repayments. While lenders will usually allow you to make some kind of agreement to repay what you owe, without an income coming into the home this could be impossible. If you are taken to court and the judge sides with the lender then you could be given an eviction date and have to leave your home. Mortgage unemployment insurance can ease all of these worries.

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