Having that home repossessed because you can’t afford to keep up with your mortgage payments is something you won’t be proud of. Yet this can happen, and often when you least expect it. Far too many people don’t think that mortgage protection is something that they need to consider, especially if they are in a good job, have good health and earn a reasonable amount of money. However in life things can change in the blink of an eye and your once idyllic lifestyle can be taken away from you in a flash.
This may seem quite dramatic, but it isn’t. Everyday when you read the newspapers or see the news there are tragic stories about people who are either involved in road accidents or simply drop down dead with no warning – and these are the type of situations that cause people to fall behind with mortgage payments. With mortgage protection families of the deceased can be helped with the cost of their repayments.
Mortgage protection doesn’t just provide cover for the unexpected death of a mortgage holder, it can also help in other circumstances such as critical illness, redundancy and long term sickness. If you have a fully protected mortgage you will have peace of mind knowing that your mortgage will be covered if life does throw something at you that you are not prepared for. Take illness for example, no one can plan when and for how long they will be ill for, or the severity of the illness. Some people are lucky enough to be employed by a company that provides a sickness scheme that will allow them to be ill for up to six months and still receive their full salary each month – and for many people this will be enough for them to make a full recovery. Some people on the other hand will only receive statutory sickness pay which is usually not enough to provide enough income to pay a mortgage and the other bills associated with owning a home. This can be further worsened if you are the only wage earner in the house.
If you are in a job that will not pay you well if you become ill or have to leave work for some time then mortgage protection really is something that is worth seriously thinking about. As with any type of insurance there are different types of mortgage protection and different premiums that you should expect to pay. Here are a few of those types of mortgage protection that are available on the market right now:
- Fully protected mortgage – this is a type of plan that will cover you in the event of your death, critical illness, redundancy, long term sickness and it will usually cover your buildings insurance too. Mortgage providers do not consider mortgage protection to be compulsory, however it is compulsory to have buildings insurance for your property to protect it.
- Level critical illness insurance – this type of mortgage protection covers you if you contract a critical illness during the term of the plan. You will then be assisted in your mortgage repayments.
- Long term sickness – this is similar to the critical illness insurance, however you can claim on this is you are absent from work due to an illness that is not classed as critical.
This is just a brief look at how mortgage protection can help you. If you would like to know more contact Go Direct who will be more than happy to help you with mortgage protection insurance needs.
About the Author
Mark Walpole is a protection and mortgage advisor at godirect.co.uk, one of the UK's most trusted information site about personal finance.
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