The truth is both you and your mortgage provider will benefit from you having mortgage cover. The provider will have a mortgage that never defaults which looks good on their books but you also benefit greatly. Your benefit will be more substantial in that without the policy you could lose your home but the mortgage is just another transaction to the provider.
If you were to lose all or part of your salaried income, do you any have savings to rely on? Can you afford to wait until government payments kick in? If you suffered an accident, sickness or involuntary unemployment you can receive a tax free cash sum in as little as 30 days after the named event.
The policy will pay out for 12 or 24 months depending on the provider you choose. And as mentioned earlier the payment can be made after 30 – 90 days of the covered event. This time is known as the deferment period and there is no way around this, although a small number of providers could have a shorter period.
Mortgage cover will pay a percentage of your income as a benefit thanks to the maximum benefit levels imposed by providers. For example the company may pay up to 60% of your gross income or £1,500.00 which ever is lower.
Applying for a policy is relatively straightforward. You will need to meet the entry requirements relating to age, residency and employment status. Once you do this it does not automatically mean you are covered. You do need to look out for exclusions. These exclusions could prevent you from being covered under the policy terms and conditions so it is important to know what they are and how they could affect you.
Policy providers are often flexible in the type of cover they produce so if you did not need redundancy cover for example you could ask for coverage on only two events.
As more and more claimants join the queue for state benefits it is getting more difficult to rely on this type of help. If you are lucky you’ll have a nest egg stored away or family members who could bail you out. If not then mortgage cover could be right for you.
The policy provides peace of mind and a financial payment to keep you afloat.
If you are concerned about the cost of premiums then you can always shop at independent providers as they offer the lowest premiums on the market. The high street products cannot compare to these stand alone policies.
Mortgage cover is the ideal solution to your problem if you were faced with involuntary unemployment, sickness or accident. It will help you to keep your payments up to date so there is no need to worry about losing your home.
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