MPPI can help to secure your mortgage repayments if you were to become unemployed, fall ill or suffer from an accident that meant you were unable to work. You choose to protect up to a certain amount of the mortgage payment you make each month, pre-agreed by the provider, and then claim this sum of money back for the duration of the protection.
The income from an MPPI policy would go a long way towards you servicing the repayments of your mortgage and can make the difference between you falling into arrears and keeping on top of the repayments. Falling behind could mean you would have your home taken by the lender due to repossession if you cannot make an agreement with them to pay off the outstanding arrears.
When you can claim and for how long would depend on the provider you choose to take out the policy with. Standalone payment protection specialist British Insurance would provide you with an income after the 30th day of your unemployment or from you being incapacitated. They also date back the benefit to day one of your unemployment or from being unable to work. You can choose to protect your repayments for 12 months or 24 and after this period of time the policy would cease paying out. If you compare the terms of other providers you would find that some will ask you wait for up to 90 days before making a claim. You would also need to check for how long you are able to claim as with some providers it could be 12 months and others could offer 24 months of cover.
Being able to maintain your mortgage repayments is imperative if you want to keep your home and mortgage payment protection insurance can be an excellent way of doing so if you lose your own income. If you are risking turning to savings as a means of servicing your mortgage repayments you could be let down as they could run out before you found work or recovered. Some homeowners also rely on being able to claim benefits from the State and this again can be a let down. You would have to be eligible to receive benefits and even if you were any money you could receive would only go towards the interest part of the mortgage repayments and it would only be up to so much of it. You would also have to wait for many months before you would see any money at the present time.
Providing you check for suitability of MPPI before you buy a policy you would have a safety net that could be relied upon. If you take out the cover with independent specialist British Insurance you can use the information they supply on their website to check the exclusions against your lifestyle.
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