Mortgage protection insurance to protect your home

Losing your home is a nightmare that all homeowners are faced with when paying a mortgage over a period of what is often 25 years. Several missed monthly payments would have the lender seeking repossession of your home. Therefore you have to hope that you will not become a statistic of unemployment by way of redundancy, or hope that you do not have to take a long time away from work due to illness or accident. If you want know that mortgage repayments would be secure then you can choose to take out mortgage protection insurance to help protect the roof over your head.

Mortgage protection insurance would provide you with a tax free sum of money to fall back on each month. You would then be able to continue meeting the agreement of your mortgage and not fall into arrears. This income would allow you freedom to find work again if you had become unemployed or give you time to recover. The majority of policies will pay an income for a period of between 12 and 24 months after being incapacitated or unemployed for between 30 and 90 days, depending on the terms set by the provider.

If you choose to go with ethical specialist British Insurance this would be from the 30th day for up to 12-months. Mortgage protection insurance policies do have exclusions and it is imperative that you check these against your current circumstances to ensure eligibility.

To start with you have to be working full time in the UK, Channel Islands or Isle of Man. Exclusions which are found in general include being of retirement age when applying, if you are in self-employment or you suffer illness at the time of applying that has re-occurred in the 2 years prior to applying. Different providers can add in others so it is always worth double checking the wording of each protection policy you consider taking out.