It seems like these days, there’s an insurance policy for everything — your home, its contents, your car, even your life! So, why wouldn’t you think about protecting something like your mortgage?
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
There’s no way to know exactly what’s coming your way in life, so it’s smart to be prepared. Mortgage payment protection insurance is an important safety net for anyone who has the responsibility of paying a mortgage every month. Even if your circumstances change — for whatever reason — you’ll still have a way to make your mortgage repayments.
Cover when you need it
If you are ever made redundant or are unable to work because you’ve had an accident or have become ill, mortgage payment protection insurance can help you meet your mortgage obligations. It’s a great way to provide peace of mind since your mortgage is usually one of, if not the biggest financial obligations.
Mortgage payment protection insurance can help prevent your home from being repossessed if you don’t have a way to pay your repayments while you’re recovering from illness or whilst you’re searching for a new job if you have become unemployed.
Peace of mind with a protection policy
Unless you have an incredibly generous scheme for sick pay, it’s likely many people would struggle to pay their mortgage in the medium to long-term. Not without some type of assistance, that is. Unexpected injury or illness that could leave you wondering how you’re going to pay your mortgage, but with mortgage protection, you can rest easy.
Check your policy
As with many other insurance policies, if you wish to make a claim, it must be a reason covered in your policy. If you voluntarily choose to take redundancy or if you resign of your own accord, you might not be covered. Be sure you check your policy to confirm your situation will be covered.
Some mortgage protection insurance policies also cover accident, sickness and unemployment in one, (also known as ASU policies) so confirm with your provider.
There is a possibility you could be eligible for government support to help you with mortgage payments, but whether or not you qualify will depend on your circumstances. Additionally, support packages sometimes only cover the interest you owe, not the full cost of the repayments entirely, so check your policy.
Something important to remember
Mortgage protection insurance won’t help you pay your mortgage forever. Coverage length could range from twelve months to two years. For a higher cost, some accident and sickness policies might cover your repayments until you reach retirement age. It might be a higher price, but it provides long-term cover if you’re unable to work again.
Insurers offer a variety of mortgage payment protection insurance policies so be sure you understand what is and isn’t included in your policy before you commit.
Ready to protect your mortgage?
It might be hard to wrap your head around Mortgage payment protection insurance; we know how important it is to find the right cover for you, so if you want to discuss how to fully protect your mortgage, get in touch with us.