Finance >> Mortgage >> Mortgage Protection Insurance >> Mortgage Protection Insurance

Mortgage Protection Insurance

Shed your worries and relax in peace! Your long cherished dream of owning a house finally came true. You got the best deal available on the mortgages and happily moved in to your new sweet home. So far so good! But have you made enough provisions to pay your monthly installments in the event of a crisis like losing a job? What if you meet an accident and are no more capable of working? Well, to protect homeowners against difficulties in the repayments of mortgages due to eventualities, insurance companies have come up with Mortgage Protection Insurance also known as mortgage payment protection policy. For people, who are not Financially sound enough, it becomes even more important to opt for a payment protection plan.

As the name implies, a mortgage protection insurance policy safeguards you repayment commitments in case of any eventuality. You have to pay a small amount every month to the insurance provider which is called premium. Mortgage Protection Insurance may not be compulsory but many lenders in UK do put it as a condition for providing mortgages. Depending upon the policy you choose, an insurance policy would cover any cost related from Mortgages, in addition to interests and monthly repayments. In most of the cases, the insurance provider starts paying for mortgages one month after you become jobless. Generally, the mortgage companies pay for 12 months but depending upon the policy the period can be longer.

You need to intimate the insurance provider in the event of losing a job. The insurance provider will verify your claim and once it is done and you remain without salary for a month, the insurance company will start paying for your Mortgages. The standard policies, adopted by many companies, the payments are made directly to the lenders. But, some companies also pay it to the customer. There are many lenders in UK who provide mortgage insurance to the borrowers. But, such people would do well to compare the costs involved in taking a stand alone insurance product against those provided by mortgage lenders.

If you are planning to buy a stand alone Mortgage Protection Insurance product then you will do well to shop around in the market. It’s very important to enquire costs involved with many providers so that you can get the best deal. In case, you are running against time then in that case you can do some search on the internet. There are many insurance providers in UK who sell products through their websites. You can also know about the various insurance products on offer and their terms and conditions. Select the plan which suits you best even though if it is a bit costly. So, don’t wait till the clock ticks over. Enquire for a Mortgage Protection Insurance plan today and rest in peace!