With the state of the world economy heading south, the level of unemployment seems to be heading north. And everyone stuck in the middle are getting more and more nervous especially if mortgages are involved. The thought of losing your job could be very concerning, but if you have a mortgage protection UK policy you could come out smiling.
This product will help you meet your mortgage payments if you lose all or part of your income due to an involuntary reason. This could be due to redundancy, sickness or accident.
Owning a mortgage is a big accomplishment and in today’s economy keeping it seems to be an even bigger challenge,
Policy Benefits and Features
A mortgage protection UK policy will pay a monthly income for 12 or 24 months depending on the provider you choose. This benefit will not cover your entire salary as there are maximum benefit levels; however the payment is made free of tax. If you returned to work before the end of the 12 or 24 month period your payments will cease.
If you want peace of mind during a very shaky economy then you might want to consider protecting your mortgage payments. With cover in place there’ll be no need to worry about missed payments leading to poor credit or even repossessions.
Points To Consider
We mentioned earlier that the policy will not replace an entire income; well most providers will pay a percentage of your gross salary so make sure this is enough to cover your mortgage payment.
Most policies carry details of exclusions and specific rules in the fine print so be sure to read them all. Some rules relate to the number of hours you can work to qualify or the type of job you’re in or even regarding existing medical conditions.
With most providers you must be employed for a specified period before you can apply for the product and before you can make a claim you may need to wait out a deferment period.
It is best to familiarise yourself with these points as you don’t want to end up with a policy that will not cover your individual circumstances.
Most mortgage protection UK policies have similar benefits but you can get varying quotes for premiums depending on where you shop. The independent providers will more often than not have the lowest premiums in the market.
Summary
Can you see how important mortgage protection UK cover can be? Of course if you have huge savings that could tie you over until you return to work, this product may not be suitable. However if like the majority of Briton you live form pay check to pay check, protecting your mortgage payments is worth considering.
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