Mortgage protection insurance UK cover to protect your mortgage repayments
Being able to maintain your mortgage repayments is something that is a worry to all of us, especially in the current uncertain economic climate. With redundancies widespread across the industries, anyone of us could be vulnerable to losing our job. And even if our jobs are safe, what would happen if we lost our income due to being unable to work because of illness or recovering from an accident? Certainly, State benefits would not go even part of the way to meeting an average mortgage repayment. And that is where mortgage protection insurance UK cover can prove invaluable.
Also known as mortgage payment protection insurance, or MPPI, this insurance will pay you a tax free monthly amount for up to 24 months (depending on the provider) should you lose your income to accident, sickness or unemployment. (This is why this insurance can also be known as ASU insurance). This means that you can maintain your mortgage repayments as well as associated costs such as life and critical illness cover, and home insurance.
You can typically start to claim on the insurance from 30 – 90 days after the event, subject to the individual policy terms and conditions. Some providers, such as standalone specialist Good Insurance, will allow you to back date your claim to the first day that you were incapacitated or unemployed, meaning you feel the full benefits of the cover.
How much benefit you will receive will be agreed at the time of taking out the mortgage protection insurance UK cover and this can vary according to the provider. However, you can expect to be able to claim somewhere in the region of an amount up to £3000 or 75% of your gross monthly earned income.
As with all purchases, it makes sense to shop around for the cover as the High Street banks and lenders do have a well publicised history of often over charging for the cover as well as selling cover that is not always suited to the homeowner.
By using an independent provider of mortgage protection insurance UK cover you can often make quite substantial savings on the premiums. For example, a policy from Good Insurance will cost up to 40% less than one from a traditional provider, which equates to savings of hundreds or even thousands of pounds over the terms of your mortgage. So, for peace of mind that your home will be safe even when faced by the threat of redundancy, it make sense to consider protecting your finances with a mortgage payment insurance policy.