What Is A Mortgage Protection Cover?
No one knows what the future may hold.
Today you may be a healthy and able employee who earns a steady pay check to pay for food, clothing and for your children's school tuition fees.
But tomorrow, this may not be the case for you any longer.
You may become suddenly unemployed because of an unfortunate accident or sickness that will affect your financial stability.
What's even more unfortunate is the fact that over 70% of individuals fail to qualify to avail of Income Support and even if you happen to belong to the 30% who do qualify, you're only entitled to receiving a small percentage of your normal income.
This is where mortgage protection insurance comes in handy.
It gives you protection in case of hospitalization, accident and sickness that leaves you disabled, involuntary unemployment or if you had to resign from your job to become a full time care taker of a disabled family member.
How It Works There are a number of areas covered by mortgage protection policy and you can have the option to choose the type and level of the mortgage protection cover you need, whether it's just accident and sickness, or only unemployment cover.
You also choose the amount of monthly cover you need and you pay your premium when the due date arrives.
With the mortgage protection insurance, your monthly repayment and possibly some other related payments such as insurance premiums for your house are covered so should the worse happen, you can have the peace of mind that the roof over your head is completely protected.
After a set period of 12 months normally, most mortgage payment protection insurance policies stop paying out but there are some however that make payments for an even shorter period of time, six months to be specific.
Who are Eligible You are normally eligible to avail of a mortgage protection insurance policy if: 1.
You are 18 years old at least and under the age of 65 2.
You are a permanent resident and working within the UK, Isle of Man or Channel Islands and also qualify to receive jobseeker's allowance 3.
You have been working for over six months in the same company and if you are a contract employee or self-employed, working for more than 16 hours a week 4.
You are availing of the Mortgage Payment Protection insurance policy in order to protect the mortgage on the private residential property you are residing in You agree to the terms and conditions of the Mortgage Protection Insurance Monthly Premium Rates and Cost of Mortgage Protection Cover Like any other insurance policy, there are premiums you need to pay when you decide to avail of a mortgage protection cover.
The costs of the cover are expressed as a rate per £100 of monthly benefit and also include premium tax insurance.
The amount of monthly cover you need as well as the type of cover you select are the two factors that determine your cover cost.
It is not easy to understand mortgage protection cover as it comes with a host of terms but it is something you definitely need to have a good grasp of before you avail so that you know what are covered and what are not on your mortgage protection policy.
Today you may be a healthy and able employee who earns a steady pay check to pay for food, clothing and for your children's school tuition fees.
But tomorrow, this may not be the case for you any longer.
You may become suddenly unemployed because of an unfortunate accident or sickness that will affect your financial stability.
What's even more unfortunate is the fact that over 70% of individuals fail to qualify to avail of Income Support and even if you happen to belong to the 30% who do qualify, you're only entitled to receiving a small percentage of your normal income.
This is where mortgage protection insurance comes in handy.
It gives you protection in case of hospitalization, accident and sickness that leaves you disabled, involuntary unemployment or if you had to resign from your job to become a full time care taker of a disabled family member.
How It Works There are a number of areas covered by mortgage protection policy and you can have the option to choose the type and level of the mortgage protection cover you need, whether it's just accident and sickness, or only unemployment cover.
You also choose the amount of monthly cover you need and you pay your premium when the due date arrives.
With the mortgage protection insurance, your monthly repayment and possibly some other related payments such as insurance premiums for your house are covered so should the worse happen, you can have the peace of mind that the roof over your head is completely protected.
After a set period of 12 months normally, most mortgage payment protection insurance policies stop paying out but there are some however that make payments for an even shorter period of time, six months to be specific.
Who are Eligible You are normally eligible to avail of a mortgage protection insurance policy if: 1.
You are 18 years old at least and under the age of 65 2.
You are a permanent resident and working within the UK, Isle of Man or Channel Islands and also qualify to receive jobseeker's allowance 3.
You have been working for over six months in the same company and if you are a contract employee or self-employed, working for more than 16 hours a week 4.
You are availing of the Mortgage Payment Protection insurance policy in order to protect the mortgage on the private residential property you are residing in You agree to the terms and conditions of the Mortgage Protection Insurance Monthly Premium Rates and Cost of Mortgage Protection Cover Like any other insurance policy, there are premiums you need to pay when you decide to avail of a mortgage protection cover.
The costs of the cover are expressed as a rate per £100 of monthly benefit and also include premium tax insurance.
The amount of monthly cover you need as well as the type of cover you select are the two factors that determine your cover cost.
It is not easy to understand mortgage protection cover as it comes with a host of terms but it is something you definitely need to have a good grasp of before you avail so that you know what are covered and what are not on your mortgage protection policy.