For most people, their home is the single largest asset they will ever own. So it makes perfect sense to protect your living space as best you can. Each year in the UK an increasing amount of properties are repossessed due to the owners having insufficient or even non-existent mortgage payment protection. With the ever increasing cost of living, and the growing instability of the western economy, everyone should be considering protecting their assets through some form of insurance.
Life has a way of throwing us unexpected surprises, none of us can be sure that tomorrow will not bring bad weather, making sure that your home remains your home through rain or shine is possibly the most sensible financial decision you will ever make. Mortgage protection insurance is relatively inexpensive; there can be no reason why anyone would consider owning a home without mortgage payment protection.
What does Mortgage Payment Protection Cover?
Typically, mortgage payment protection will cover the policy holder for three things. It will come with accident cover, meaning if you were to suddenly become unable to work for an extended period, or even indefinitely, due to an accident, your mortgage payments would either be made each month. Sickness is also usually part of the plan, and adds the safety of being able to ensure your mortgage payments are met should you fall foul of an illness for an extended period of time. Finally, unemployment cover is included, and will provide protection for you if you lose your job of work. This kind of cover is usually known as an ASU (Accident, Sickness & Unemployment) policy.
Products will be offered with different claim periods; usually either 12 or 24 months, meaning the benefit will be paid for this amount of time once you start your insurance claim. There will also usually be a 30 day waiting period before a claim can be made, which is then paid “back to day one” once the claim becomes effective, meaning that even though you had to wait 30 days before you could claim, your claim will date back to the start of the 30 day waiting period.
In the last five years, mortgage payment protection has become something of a cut throat market, and it is now possible to find a whole selection of extremely well priced insurance products offering exceptional value.
How Can I Find Help in Choosing the Right Product?
If you are currently not benefiting from the cover of a mortgage protection policy you would be best advised to seek out professional advice. Make sure that you understand the policy schedule before agreeing to it; again your broker will be able to answer any questions, or explain anything you do not understand as part of his service.