Do you need mortgage protection insurance?

With the world economy taking a nose dive, large financial institutions beginning to struggle and established corporations feeling the pinch, nobody can be sure of a job for life. Anybody who has the responsibility of making mortgage payments each month would do well to consider taking up some form of mortgage protection insurance.

Mortgage protection insurance can cover you for those unexpected bends in the road, which otherwise would leave you struggling to make your monthly repayments and see your home at threat of repossession. Not only does mortgage protection insurance protect you from unexpected periods of unemployment, it will also make sure you are well protected should you fall ill or become the victim of a dilapidating illness. If we consider that three out of every ten people will experience some form of extended illness during their working life, then it makes complete and utter sense to ensure that if you are unlucky enough to be part of this statistic, then your home is protected and safeguarded.

Mortgage protection insurance will usually be offered over a twelve month period of cover, meaning that if you were to fall ill or become unemployed, then you would receive benefit for 12 months from the start of your claim. additionally, almost every mortgage protection policy will contain a 30 day deferment period, meaning that any claim made will not be paid for the first 30 days, however, many policies also contains a “back to day one” clause, meaning that the 30 day deferment will be paid after 30 days all the way back to the first day of claiming.

The main form of mortgage protection insurance is often termed an ASU (accident, sickness and unemployment) policy, although you may well also be offered an AS (accident and sickness) or an AU (accident and unemployment). Depending upon your own financial situation and whether you have additional insurance cover in place to cover sickness and accident, you will need to decide upon the type of mortgage protection insurance that suits you best.

The unfortunate situation seems to arise frequently, that the people who could benefit the most from taking up some form of mortgage protection insurance, are the people least likely to do so. Anyone who is already finding it hard to meet their current level of debt each month should definitely consider mortgage protection insurance a must have financial product, as it is unlikely that they would be able to meet their monthly mortgage repayments should they become ill or find themselves without work for even a short period of time.

If you feel that you would benefit from a mortgage protection insurance policy, then you would be best advised to take the advice of a professional insurance broker. Your broker will be able to search a whole range of mortgage protection insurance products and find the one that fits your own particular needs most closely, and that will protect your home the best.