Accidents and disasters can and do happen, and if you aren’t adequately insured or protected, it could leave you in financial wreck. You need insurance to protect your life, your ability to earn income, and to keep a roof over your head and your family. However, the mortgage protection insurance is a best choice for owners to protect their mortgage in case of happening any unfortunate event or disaster where they become unable to pay, but before obtaining a policy it is utterly indispensable that you double check a mortgage protection insurance policy before renting it out if you like to be sure that you would be eligible to claim.
Cover can be taken out to protect against becoming out of work sometime in the future due to suffering an accident, illness or unemployment by way of unforeseen redundancy. However, the product is not appropriate for all individuals due to the exclusions which can be found in all policies. You have to know that they exist and what they are before buying.
Some exclusions are universal to all shelter policies and can include being of retirement age, having a pre-existing medical condition, or if you are only in part time work. Providers can add in others so check the wording of the terms and conditions is essential before you sign on the dotted line.
If mortgage protection is suitable for your circumstances it can make you an income between day 31 of being out of work and day 90. Once the policy has started providing you with a tax free income it would then continue to do so for between 12 and 24 months. This would usually give you enough time to recover or to find another job.
Contracting out mortgage protection insurance could mean the conflict between you being able to continue seeing your mortgage repayments or struggling. If you see yourself getting into arrears on the repayments then you could lose your home to repossession which is a horrible thought, and the added stress of having to get the income needed could set back your recovery and a policy can relieve this and tolerate you to focus on bringing back to earning.
The cost of mortgage protection insurance can fluctuate significantly. If you take out cover which is often put up at the time of borrowing then you will necessarily end up paying a great deal more as the high street banks and lenders tend to charger extortionate premiums for the protection.
Historically, an independent provider can offer cover at a cheaper price, often with added policy benefits. Standalone providers back up their products with experience in selling cover and offer the property holder access to the information needed so they can make an informed decision.
Mortgage protection has got hold of a drubbing in the past along with the residue of the family of payment protection. A study into mis-selling of all policies is still in progress by the Financial Services Authority (FSA) and the Competition Commission is conducting an in-depth review of the sector. Some of the many problems linked to mis-selling have included the high monetary value of a policy; a deficiency of info regarding the exclusions; and poor quality products. It is hoped that with the introduction by the FSA of comparison tables in March 2008, mortgage protection will be much easier to understand and buy. Until then stick with an independent provider and make good use of the valuable advice and information that they are able to give before buying your policy.