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This type of cover aims to ensure that your monthly mortgage payments are covered should you be made redundant or be too ill to work. Mortgage payments are usually made for a limited period only which can vary between 1 to 2 years. You can take out mortgage protection when you take out a mortgage. You will often find that should you make a claim on this type of cover there will be a predetermined period of time before payments start a sort of waiting time. During such a time it is advisable to use rely on other types of cover such as sick pay, which is usually paid by the company you work for.
Considerations when taking out Mortgage Payment Protection:
- It is worth thinking about if you've taken out your mortgage after October 1995 or have re-mortgaged since then, as you probably won't get any help from the state with your mortgage bills if you get into trouble.
- This type of cover is beneficial if you think paying your mortgage would be very difficult if you were made redundant. You have to consider that you will also have to find money to cover living expenses not only your mortgage. If you have no other cover then it makes sense to ensure you will still have a roof over your head for a while.
- If you are self employed or your job does not have the benefit of sick pay should you fall ill, then mortgage payment protection is a must for piece of mind.
- Mortgage payment protection can be expensive, but in some case is vital to have.
- It only covers your mortgage repayments, so you will not have any extra money left for other thins such as food and clothing etc.