Nowadays when job security is not guaranteed, when one can find himself out of work in the blink of an eye, mortgage protection insurance is a must have for every home owner. Loosing your monthly income can have a huge impact on you as you will not be able to pay up your house mortgage and you will risk losing your home. Knowing that your house probably also represents your biggest investment, you should take safety measures to protect it by getting mortgage protection insurance.
This type of insurance is very important for the simple reason that if you run out of job you can’t rely on the state to help you pay up your mortgage. The state will not provide help for the first nine months of unemployment and you can only qualify for benefit if you also qualify for income support. In such situations, having mortgage protection insurance can be a real saver as it will cover mortgage payments during the period of unemployment. You can buy this type of insurance for protection in case of unemployment, sickness and in case of accidents.
Before getting mortgage protection insurance make sure you check out the terms and conditions under which you can claim coverage for mortgage payments, as they can differ with each policy. Basically every policy in general will provide coverage 30 to 60 days after the problem occurs. Even so, most policies will pay for the earlier period as well. This will ensure the insurance company that they won’t have to pay up if you will be unemployed for only a short period of time.
You need to know that most mortgage protection insurance policies provide coverage for a limited period of time which usually resumes to maximum 12 months. For those who are confident that their financial state will recover in less time, there is a type of policy that provides coverage for a period of only three months. The major advantage for this policy would be that it’s much cheaper compared to the 12 months policy. Besides the time limit, you need to know that there is also a maximum payment level which means that each policy will limit the monthly payment covered to a certain sum of money. This means you need to know about the sum of money covered before you buy mortgage protection insurance in order to know if it will cover for the mortgage payments.