When you take out a mortgage you are usually offered protection for the amount you are borrowing in case you should become unable to work after suffering from an accident, sickness that renders you unable to work, or unemployment. While no one likes to consider the possibility that the worst might happen, when it comes to the roof over your head you do need to give it careful consideration and consider taking out the cover. However a policy can be expensive and finding cheap mortgage protection can be difficult.
Mortgage payment protection insurance taken from the high street lender can work out expensive and a better way to get cheap cover is to choose to buy it independently. By choosing to take out your mortgage cover this way you can make huge savings on a policy and be sure of getting all the information needed to determine if it is suitable. Mortgage protection is not suitable for all circumstances and there are universal exclusions such as if you are self-employed, suffering from a pre-existing medical condition, are retired or only working in a part time position. However it is worthwhile checking the terms and conditions because there are variations on all exclusions.
Having mortgage protection insurance can mean the difference between you losing your home or keeping it. Many homeowners are under the impression that the State would step in and provide the money needed to allow them to service their mortgage repayments. While you could get help, financial assistance is only available to those homeowners who meet the right criteria. Another downside is that you have to wait months for any help that you do qualify for. This means that you can still suffer stress and anxiety whilst waiting.
Cheap mortgage protection taken independently could begin to give that much needed income which would be tax free between day 31 and 90 of being out of work. With the majority of providers a policy will be backdated to the first day of finding yourself unfit for work. Once a policy has started it would then continue providing benefit between 12 and 24 months which is usually enough time to recover and get back on your feet again.
Protection for the amount you borrow is usually offered at the time of taking out the mortgage, however historically with the high street lenders very often little or no information will be given regarding the exclusions and total cost of the cover. In some cases the cost can be enormous and boost up the amount you are borrowing considerably. In the worst cases individuals have bought a policy this way that has not been suitable. Those who are self-employed, suffering an ongoing illness, are of retirement age or who only work part time would not benefit from the cover. It is essential that you read the wording of any policy you are considering before purchasing. However all ethical specialists will make the key facts available alongside cheap mortgage protection and will explain them in plain English.
Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of cheap mortgage protection insurance, income protection insurance and loan protection insurance.
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