Mortgage Insurance Explained

Mortgage Insurance explained
Getting a​ mortgage is​ bad enough – what with terms like fixed rate,​ discount,​ variable etc – so mention mortgage insurance and naturally your eyes will start to​ glaze over .​
However,​ mortgage insurance is​ an​ extremely important insurance to​ have – in​ fact,​ it​ can the​ difference between keeping a​ roof over your head or​ ending up having your home repossessed.
If you​ recently took out a​ mortgage,​ you​ may remember the​ lender asking you​ whether you​ wanted mortgage payment protection insurance .​
It probably sounded expensive and unnecessary .​
And while,​ in​ some cases,​ there are companies who like to​ charge you​ too much for the​ product,​ it​ doesn’t have to​ be that way.
As for it​ being unnecessary – get the​ right policy and at​ the​ right price and it​ will be an​ invaluable safety net for you​ .​
So,​ what is​ mortgage insurance? It is​ a​ product whereby should you​ be unable to​ meet your mortgage repayments due to​ being made involuntarily redundant or​ due to​ being able to​ work because of​ sickness or​ maybe an​ accident – then it​ will cover your mortgage repayments.
Your mortgage repayments (and sometimes other mortgage related outgoings too) will be covered for up to​ a​ set period of​ time (typically 12 months but this can vary from provider to​ provider) to​ give you​ enough time to​ find another job,​ or​ get well etc.
Many people may think that mortgage payment protection insurance is​ a​ waste of​ money,​ using the​ old adage It’ll never happen to​ me .​
However,​ this is​ not true .​
Being unable to​ work – and therefore having to​ struggle on​ state benefits – due to​ involuntary redundancy,​ accident or​ sickness can happen to​ anyone .​
It does not discriminate and can strike anyone at​ any time .​
Therefore,​ if​ you​ are in​ full time employment for more than 16 hours a​ week and you​ have a​ mortgage,​ then taking out insurance against the​ financial ramifications makes sound sense.
Despite what the​ press says,​ it​ doesn’t have to​ be expensive to​ take out this kind of​ insurance,​ and nor do you​ have to​ take out a​ policy with your current mortgage lender .​
This means you​ are free to​ shop around to​ get a​ policy that offers you​ comprehensive protection without a​ high price tag!
If you​ are looking for mortgage protection insurance,​ then do not automatically accept the​ first quotation you​ get – premiums can vary wildly,​ as​ can the​ terms of​ the​ policy and the​ benefits.
Do your research – the​ internet is​ a​ quick and easy way to​ compare policies – and then make a​ decision from there.

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