Mortgage Protection Insurance - Mortgage cover against the risk of redundancy
Mortgage protection insurance is cover for customers mortgages to cover a range of eventualities, from unemployment, redundancy, accidents and illness. For most people the mortgage is their largest financial commitment, and peace of mind over repayments on the mortgage is important and with mortgage protection insurance so easy to achieve.
Mortgage Protection Insurance Example
Mortgage protection insurance giving peace of mind on mortgage repayments is especially important for the self employed, those who work as contract workers and those who work for temporary agencies. These workers are either at risk of layoffs or typically have difficulty getting access to benefits. These consumers cannot rely on the state to help cover the mortgage repayments when they are unable to work.
Most mortgage protection policies will provide cover for mortgage repayments for up to 12 months while consumers are seeking alternative employment, or are recovering from an accident or illness. Importantly, many mortgage protection insurance providers have a deferral period in their policies, which represents a period during which mortgage repayments must continue to be paid, until the insurance provider begins to meet the mortgage repayments. This period varies between providers. The terms and conditions under which claims are made differ with every policy, so consumers should always check mortgage protection insurance policies very carefully to ensure compliancy with any types of exclusions.
Mortgage Protection Insurance Information
Usually there is no help for the first nine months of unemployment or disability for mortgages taken since October 1995, and then existing borrowers only qualify for benefit if they also qualify for Income Support. There may be an excess period with some mortgage protection insurance policies. This is the time customers may have to wait to start receiving payments from the policy after they have become ill, had an accident or become unemployed. This excess period can vary from no period to having to wait thirty, sixty or even ninety days.