Facts about mortgage protection insurance

Get your debts covered if you lose your major source of income

09:04 17 November 2013

Mortgage protection insurance helps you out with repayments up to the sum of £3,000 every month if you fall into any emergency situation, as long as you pay your monthly premium. These mortgage companies will no doubt settle your bills for up to a year or two, in case you lose your job or if illness takes over you and stops you from working and earning your regular salary. Some of these mortgage providers offer you the option of protection policies along with the mortgage packages and it is left to you to review and accept, or reject.

There are a few points to consider when it boils down to purchasing mortgage protection insurance.

• Most mortgage companies will not accept your request if it is made within the first 2 months of your registration to the mortgage protection insurance policy.

 

• Some insurers may continuously cover repayments only for a year so if you are not back to your financial prowess within that time, you will be on your own.

 

• There are instances where insurers will not pay out for you and some of these instances include resignation, voluntary redundancy, dismissal, etc. Inability due to stress or any back injury may not be accepted too. Read the fine print to check this.

Since mortgage protection insurance has its limits especially when it comes to health issues, you can decide to go with other alternatives if you are seeking cover for your health issues, or long-term income problem.

Critical illness insurance policies do not provide cover if your source of income is regular such as mortgage protection but you can make do with its other good sides. On the other hand, if you are diagnosed to be seriously ill, critical illness insurance policy will pay a huge sum of money in order to help you cover the cost of essential bills and mortgage repayments. This is where a critical insurance policy comes in as an alternative to mortgage protection insurance.