Mortgage insurance should seriously by any one who is a homeowner – it should be viewed as a financial safety net against the financial ramifications of becoming unable to work due to accident, injury or involuntary unemployment.
With the number of repossessions on the increase and unemployment soaring, protecting your home is essential. After all, do you really want to become another harrowing statistic of repossession?
The good news is that mortgage insurance protection cover does not need to be costly. When bought independently, for example, from a specialist standalone provider such as British Insurance, it can be extremely a cost-effective way of protecting your mortgage repayments.
So what can the insurance do for you? Should you lose your income, you will receive a tax free monthly sum for 12 months (in some cases, up to 24 months) which can help towards servicing your mortgage repayments.
This takes away the financial pressure from you and allows you to concentrate on getting well or finding another job.
Do note that provider’s insurance will vary as to how long the protection will pay out the benefits for and so does the period you have to wait before you can make a claim. This will be anywhere from thirty to ninety days after the first day you are away from work.
Do look out for policies where the benefit is backdated to the first day of the claim to ensure you get the maximum out of your policy.
Again, the terms and conditions of the policy will vary among the different policies from the different providers. Do ensure that you always fully understand the mortgage payment protection insurance you are purchasing.
Do note that with all policies, unemployment benefits will not be paid out in the case of misconduct which contributes or leads to your dismissal; nor resignation, voluntary unemployment or voluntary redundancy.
Finally, if you want quality mortgage insurance cover, then do your research by shopping around. Compare not only prices, but the terms and conditions too. That way you can ensure you get the protection you need at a price that fits your budget.
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