Mortgage Protection Insurance

Peculiarity of Mortgage Protection and Income Insurance

You might argue that there are several government aids which will cover you in case this happens. Unfortunately, no aid presently beats what mortgage payment protection insurance offers. Other packages will only cover the amount paid as interest and not the actual repayment.

It is, however, important to note that the mortgage payment protection insurance only covers you for a year. You might consider getting other options or getting a job to cover this deficit. You should also try to find out the amount you are likely to earn when you fall ill.

This is referred to as sick pay and if this amount is substantial, you can just compare mortgage payment protection insurance for unemployment only.

Mortgage Payment Protection Insurance Policies

Normally, the payment begins 31 or 60 days after you are declared unfit for work or unemployed. Although some policies exist which pays immediately after you were declared unfit. You should compare mortgage payment protection insurance to have an idea of the different policies available.

As mentioned previously, the duration of payment for many mortgage protection insurance is 12 months, however, policies which only cover you for a year. Some insurance brokers also put a limit on the monthly payments you can get.

For many, the value is capped at £1500 while some more generous plans exceed about £2000 monthly. If your mortgage exceeds this, you should seek other means to prevent losing your house when unemployment or sickness beckons. Also, you can compare mortgage payment protection insurance to see if some policies exceed this figure.