Getting a mortgage is bad enough - what with terms like fixed
rate, discount, variable etc - so mention mortgage insurance and
naturally your eyes will start to glaze over.
However, mortgage insurance is an extremely important insurance
to have - in fact, it can the difference between keeping a roof
over your head or ending up having your home repossessed.
If you recently took out a mortgage, you may remember the lender
asking you whether you wanted mortgage payment protection
insurance. It probably sounded expensive and unnecessary. And
while, in some cases, there are companies who like to charge you
too much for the product, it doesn't have to be that way.
As for it being unnecessary - get the right policy and at the
right price and it will be an invaluable safety net for you. So,
what is mortgage insurance? It is a product whereby should you
be unable to meet your mortgage repayments due to being made
involuntarily redundant or due to being able to work because of
sickness or maybe an accident - then it will cover your mortgage
repayments.
Your mortgage repayments (and sometimes other mortgage related
outgoings too) will be covered for up to a set period of time
(typically 12 months but this can vary from provider to
provider) to give you enough time to find another job, or get
well etc.
Many people may think that mortgage payment protection insurance
is a waste of money, using the old adage "It'll never happen to
me". However, this is not true. Being unable to work - and
therefore having to struggle on state benefits - due to
involuntary redundancy, accident or sickness can happen to
anyone. It does not discriminate and can strike anyone at any
time.
Therefore, if you are in full time employment for more than 16
hours a week and you have a mortgage, then taking out insurance
against the financial ramifications makes sound sense.
Despite what the press says, it doesn't have to be expensive to
take out this kind of insurance, and nor do you have to take out
a policy with your current mortgage lender. This means you are
free to shop around to get a policy that offers you
comprehensive protection without a high price tag!
If you are looking for mortgage protection insurance, then do
not automatically accept the first quotation you get - premiums
can vary wildly, as can the terms of the policy and the benefits.
Do your research - the internet is a quick and easy way to
compare policies - and then make a decision from there.
About the author:
Jason Hulott is Business Development Director of Protection
Insurance. Protection Insurance is an internet based insurance
business dedicated to getting consumers the very best insurance
rates and the best products. Our product portfolio includes
