If you’re a homeowner, it’s likely you’re fully aware of what a mortgage is and your responsibility to make sure you pay it in full every month. In fact, your mortgage may be one of your biggest financial outgoings. Not being able to repay your mortgage can be a stressful situation to be in and it could even result in the repossession of your home.
To avoid being struck down with the difficulty of not being able to afford your monthly repayments, you may want to consider taking out mortgage protection cover. In this blog, we look at the facts to help you determine whether you could benefit from this particular product.
What is it?
Mortgage protection is a type of insurance that can cover your mortgage payments in the event that you are unable to. This could be due to a number of circumstances, such as unemployment, sickness or even death. Having a mortgage protection insurance plan in place can take care of your premiums if you’re no longer able to, paying your mortgage provider each month so that you’re able to keep living in your property. Simply having a policy in place could give you peace of mind that your family are able to remain safe in their home even if you’re not able to provide financially for them anymore.
Which policy should I go for?
The policy you go for will depend on your personal situation, so it’s important to do your research before you purchase your cover. Typically, the main types of cover available are accident and sickness only, unemployment only, and a combination policy of accident, sickness and unemployment. An accident and sickness policy will protect you if you suffer from an injury or long-term health condition or illness that prevents you from working, while an unemployment only plan will ensure you’re covered in the event you’re made redundant. An accident, sickness and unemployment policy will mean you’re covered for both. Before you make your purchase, you may want to think about the level of cover you will require.
Are there any restrictions?
Generally, you are able to take out a policy if you are aged 18 or over. However, some policies may apply a maximum age of 65. In most cases, you’ll need to work for at least 16 hours per week to qualify for this type of cover. It’s also important to note that you’re unlikely to be able to get cover if you’re on a temporary contract and you’ll need to have been working for a minimum of six months.
While mortgage protection insurance isn’t a mandatory requirement, having a policy in place could provide you with peace of mind that your loved ones will always have a roof over their heads should something happen to you unexpectedly.