Mortgage Protection Cover

   How would you pay your mortgage if you lost your job or had an accident? Loosing your job could mean also loosing your home.

Why take the risk - have your mortgage paid while you are off work.

We provide cover through the strongest financial companies who deal with these emotionally demanding times with the upmost professionalism and empathy.

What is the Mortgage Protection Cover

Mortgage payment protection is a policy which pays out a monthly sum to cover your mortgage if you can’t work due to illness, injury or redundancy. It is also known as Accident, Sickness and Unemployment cover (ASU).

It’s different from many other types of cover, such as income protection, as it will only pay out for a period of 12 months (24 months in some cases) so should only be seen as a financial stop-gap until you get a new job or recover from ill-health.

Don’t confuse mortgage protection with life insurance as mortgage protection does not provide a payout in the event of death. If you have dependents you should make sure you have adequate life insurance outside of any mortgage protection policy.

Mortgage Protection Cover - key features 

You are under no obligation to take out mortgage payment protection from your mortgage provider at any point, including when you are taking out a new mortgage. Shop around independent product providers to find the best deal

•     The cost of cover is not governed by issues like health, age and whether you are a smoker

•     The cost of cover depends on the size of the mortgage. It will cost £3-7 per £100 of monthly cover – so you can pay as much as £50-60 per month. As an example if your mortgage payments are around £800 a month you could pay anywhere between £24 and £56 a month.

•     Mortgage payment protection usually pays out for 12 months, but policies which pay out for 24 months are available

•     Mortgage payment insurance is different from mortgage life insurance which insures your mortgage in the event of your death

•     You can add extra cover for regular bills as well, with some policies.

The right Mortgage Protection Cover

There is a multitude of life and protection products available of which mortgage protection is just one. It’s important to get the right policy, or mix of policies, for you.

This will differ according to whether you have dependents and whether your family has other sources of income. You also need to identify the areas where you are more likely to need protection in the future. The cost of each type of cover can vary enormously and some forms of life insurance depend on your health and lifestyle. Consider consulting a financial adviser to review your protection needs and get the right policy/policies for the best cost.

You should ask yourself the following questions:

    * How much cover should I have?

    * Which protection policies should I have?

    * Which provider is the most appropriate for me?

    * Perhaps you would rather save up yourself (self-insure) to have a financial cushion if you are made redundant rather than regularly pay into a policy. This may suit those with a partner who earns a good salary (so could carry the cost of the mortgage) or if your employer has a generous sickness benefit policy in place.