Mortgage protection insurance cover could save your home

If you are in full time work and have the commitment of paying a monthly mortgage then you will no doubt have at sometime or another had the odd day off work. And while the odd day doesn’t make such a huge difference to your income having a month or more off could have a serious financial impact and could seriously affect your ability to meet your monthly mortgage repayments. If you were to be out of work for a few months then this could mean that you stand the risk of having your home repossessed if you cannot keep up with the mortgage repayments, however mortgage protection insurance cover could save your home.

Mortgage protection insurance cover is one member of a family of payment protection insurance (PPI) policies that can, when purchased correctly, ensure that you would have a monthly income to cover your mortgage repayments and associated costs if you should become out of work due to having an accident, suffering an illness or becoming unemployed through such as redundancy.

The cover is sometimes called ASU which is stands for accident, sickness and unemployment, and a policy can be taken out to safeguard against accident and sickness only; unemployment only; or accident, sickness and unemployment together.

Quotes for the mortgage protection insurance cover are given on the amount that you wish to protect each month and if you shop around for the cover and get your quote from a standalone provider then you can be sure of obtaining the cheapest quotes for the premiums. If you take the mortgage protection insurance cover that is offered alongside the mortgage from the high street lender, then the premiums could be sky high over the term of your mortgage. Also, historically, high street banks and lenders often fail to provide pertinent information regarding the key facts and exclusions within a policy. In a nutshell, this could mean that you buy a product that doesn’t even cover you.

Some of the most common exclusions within mortgage protection insurance cover are if you are self-employed, if you are retired or only work part time. If you should become unable to work due to a pre-existing medical condition then this too would be excluded and you wouldn’t be able to claim for it. There are also many exclusions among common problems that keep people out of work such as back problems and stress related illness, so it is worth checking out the exclusions to ensure that a policy would suit your requirements.

Mortgage protection insurance cover could help you save your home as if you were to be out of work, typically for 30 days or more, a good policy would kick in and be backdated to day one. It would then continue to provide you with a tax free income for up to 12 months - in some cases for up to 24 months with some providers. It isn’t, however, suitable for everyone and only you or a specialist provider can determine if it is. The majority of standalone providers will offer all the information that you need to ensure you are able to make the right choice before committing yourself to a policy. However, be aware that the high street lenders often do not and you must ask about them about the key facts and any exclusions outright.