Essentials of Mortgage Protection Insurance

Article by Margaret Gowars

Mortgage protection insurance covers eventualities such as:

• If you are sick and cannot work.• If you are involved in a bodily accident and cannot work.• If you have been made redundant due to no fault of your own.

Under this type of insurance policy the cover provided includes:• Cover for you mortgage payments for a standard policy.• Optionally, cover for other insurance premiums and household expenses.

When you take up a mortgage, the insurance provider will insist that you take up mortgage protection with them. But you are free to choose your own policy from the competitively priced policies available online. Some mortgage companies will only protect the monthly instalments but not for the maximum household expenditure you will be facing. Don’t be deceived that the lowest premium provides the best cover you need.

There is normally a health or wealth warning with all you loans and especially mortgages. Mortgage premiums need to be paid ontime, otherwise the mortgage loan provider could repossess your property. Always have a Plan B, if you could suffer redundancy, sickness or an accident. If you have a large equity in your house or home, you could sell it and rent, otherwise it could be repossessed and you will loose your money. On the other hand, if the asset value of your home is low, it may be best to surrender your house to the mortgage provider as the loan payment will be excessive. With a mortgage protection insurance policy you will normally have one year to decide which way to go but you must decide quickly.

When providing information to an insurance company ensure that it is honest and there are no inaccuracies. Check your insurance documents when they arrive and if there are any inaccuracies, phone the insurance company and have it corrected immediately and normally within 14 to 30 days of your policy being received by you.The value of your premiums will most likely depend upon your health, hobbies, age, occupation, whether you are a male or female or a smoker.

To obtain mortgage protection insurance you will need to be:• A minimum of 18 years of age.• At least employed full time for a minimum of 6 months.• If you have any pre-existing medical conditions, these will not be covered.• The company you work with will not make you redundant in the near term.

You can change your mortgage payment protection insurance, if you see a better offer but always inform the mortgage company when this happens.

About the Author

Margaret Gowars is the author and if you would like to save yourself some money on Mortgage Protection Insurance then please visit http://www.mortgageprotectioninsurance.eu for more tips.

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