Mortgage cover could stop a great deal of worry over mortgage arrears. Mortgage arrears are the biggest night mare of any home owner as while lenders will generally allow you time to repay your arrears without an income this might be impossible which of course would see you losing your home. With protection behind you there would be less chance of this happening as you would see a substantial amount coming into the home to use towards meeting your mortgage demands.
How much you would have to pay for the luxury of having an income to fall back onto would depend on your provider. They base the quotes for the premiums on your age, what events you want to protect against and the amount you choose to protect. Your chosen amount is pre-agreed by the provider and is the amount you get back monthly in tax free payments after a deferment period and for up to the term. Usually this would be in the region of around 30 to 90 days. Some generous providers will date back your benefits to day one of you suffering your chosen events. You could be entitled to get your income from the cover for 12 months while other providers might extend this to 24 months. This of course should be checked before rushing into taking out your cover.
You should also check for carer cover as generous providers will include this in your policy and payout in the event that you took care of a loved one. However not all do so always compare what terms are offered at the time of checking the cost.
You could also choose the events to take protection against with your mortgage cover. You might want to take out redundancy and incapacity protection in one. You could just choose to protect your repayments against the possibility of suffering illness or accident. You might alternatively choose just to cover unemployment on its own.
Mortgage cover should also be checked for exclusions as all providers will add in some and you need to ensure that these would not stop you from being eligible to make a claim. For instance you would have to read the small print very carefully if you are self-employed as usually a claim could only be made if you ceased trading on a permanent basis. You should also check the wording of the policy if you suffer a pre-existing medical condition as generally you would not be able to claim if you fell ill due to this illness. You would also have to be in full time work and have been so for a period of no less than 6 months. You would also need to live in the UK, the Channel isles or the Isle of Man in order to be eligible to claim on your cover.
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