Mortgage Payment Insurance Why Do We Need It?

A person’s home is the most major purchase they will ever make in their lives. If we consider this singular statement we can see why it not only makes sense to take up an offer of mortgage payment insurance, but that it would also be foolhardy not to protect such a valuable possession as your home.

The UK has witnessed an ever increasing amount of repossessions each year over the last decade, with owners of the properties being repossessed defaulting on their mortgage payments, as the banks wait greedily to claim them. Many cases of repossession could have been avoided if the owners had possessed sufficient mortgage payment insurance. With the western economy becoming more unstable each passing year, and job security and consistent income no longer a foregone fact of life, nobody can afford not to protect their home by buying a good level of mortgage payment insurance.

Unexpected things happen in life, and none of us can be sure what is going to occur tomorrow. Ensuring that your home remains your home through whatever life may throw at you, is going to be the single most conscientious financial decision you will ever make. Mortgage payment insurance is fairly low cost; there really can be no reason why everyone does not protect their property by having an adequate level of mortgage payment insurance.

What is Covered by Mortgage Payment Insurance?

Mortgage payment insurance will usually cover the policy holder for three separate situations. The policy is sometimes referred to as an ASU (Accident, Sickness & Unemployment) policy for a good reason. Accident cover is supplied, so that if were are to fall foul of a life changing accident, then your mortgage payments will be made for up to 12 months. Next we have a portion of sickness cover, this is in place to provide you with protection if you are suddenly taken ill and are unable to work or generate income. Lastly the policy will cover unemployment, ensuring that your mortgage payments are maintained if you have no work.

Every mortgage payment insurance policy will be offered with a selection of claim periods, most normally 12 or 24 months will be made available. This is the maximum duration that a single claim will be paid for. Usually, there will also be a 30 day waiting clause, meaning that you cannot make a claim for the first 30 days of sickness or unemployment, although most companies offer a “back to day one” facility, where your claim will be backdated to the start of the 30 day waiting period once your claim becomes active.

In recent years the mortgage payment insurance market has become increasingly competitive, and many full featured and aggressively priced products are now available. Many will have added additional features to increase the overall value of the policy, in an attempt to bring something new and fresh to the marketplace.

Enhanced Wealth offers a Defaqto Five Star Mortgage Payment Insurance.