If you have a mortgage then you may already have mortgage insurance protection cover included in with the mortgage. If you have then you are probable paying more than is needed for the insurance and the chances are that you know very little about your policy. Were you aware when taking it out that cover comes with certain exclusions? Were you also aware that you could have chosen to shop around for your quote with an independent provider and compared the cost of a policy?

If you choose to compare mortgage insurance protection cover then you make savings and control the policy you take out. You would have the choice over the amount you wanted to protect. This is the sum paid back to you if you lose your own income through unemployment or incapacity. This tax free income would go a long way towards ensuring that you were able to keep up with your mortgage repayments at least for the term of the policy. You would be given your first payment somewhere between the 30th and the 90th day and payments then continue each month for either 12 months or 24 months before ceasing. You could check in the terms offered by the provider so you knew when and for how long you would be able to rely on payments. You should also check to find out if the policy is dated back to the first day of suffering from one of the events you had insured.

12 months protection can be more time than needed for you to have found another job or for you to have recovered and be fit and well enough to have returned to work so you would have to bear this in mind when comparing policies, if you have a choice of terms. However take into account that your policy would just cease once the term had been reached. Also consider the fact that a policy paying out for 24 months would come with higher premiums than one paying 12 months of cover.

Mortgage insurance protection cover can be a more viable option than turning to savings to see you through your incapacity or unemployment. They could run out well before you managed to get back to work or before you had the time to find suitable work. It could also be considered a better form of backup plan than applying for an income from the State. You would need to be eligible to claim a State income to help you pay your mortgage and even if you should be eligible the income you would get would only pay towards maintaining the interest on your mortgage. You would also have to wait for almost 3 months before getting any help and mortgage arrears would already have occurred during this time. While lenders will usually allow you some time to be able to catch up on your arrears any amount of arrears can cause a great deal of anxiety to the homeowner as they are a real threat.

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