Mortgage Payment Protection Insurance

Mortgage Payment Protection Insurance



Mortgage Payment Protection Insurance
A mortgage is​ often the​ single biggest financial commitment that many people make during their lifetime,​ yet fewer than half of​ all residential mortgage holders choose to​ take on​ protection of​ their mortgage repayment ability with mortgage protection insurance .​
Mortgage protection insurance,​ or​ mortgage payment protection insurance,​ is​ a​ form of​ insurance that ensures mortgage repayments are met should the​ mortgage holder become unemployed,​ fall critically ill or​ be unable to​ earn income due to​ an​ accident .​
This type of​ protection insurance product is​ quite cheap to​ maintain,​ and allows mortgage holders to​ set an​ insurance amount for monthly protection pay-out that covers mortgage costs and additional expenses up to​ a​ set percentage above mortgage outgoings .​
Most mortgage payment protection insurance policies are strict on​ protection insurance claims .​
For instance,​ should the​ mortgage holder become unemployed through their own free will,​ then they would not be covered by the​ mortgage payment protection insurance policy .​
However,​ redundancy does qualify for payment through the​ protection insurance policy,​ providing that the​ mortgage holder actively seeks new employment .​
Additionally,​ mortgage protection insurance may not pay out if​ the​ claimant takes on​ voluntary or​ part-time work,​ although the​ protection insurance terms & conditions relating to​ this area will vary with each type of​ mortgage payment protection insurance product.
Typically,​ mortgage holders will have to​ endure a​ mortgage payment protection insurance qualifying period before receiving payment protection pay-outs .​
The qualifying period on​ mortgage payment protection insurance policies is​ normally 90 - 120 days .​
If the​ mortgage holder is​ still eligible for mortgage payment protection insurance after this period,​ then protection payments are commenced on​ a​ monthly basis.
Insurance companies often require holders of​ mortgage payment protection insurance to​ renew their mortgage protection insurance claim every month by completing a​ form .​
Sometimes the​ insurance companies will request evidence from the​ mortgage holder so they can evaluate the​ mortgage holder's eligibility for the​ continuation of​ mortgage protection insurance payments .​
This could be a​ doctor's note of​ illness or​ copies of​ job applications if​ claiming mortgage payment protection insurance pay-out because of​ redundancy .​
Mortgage payment protection insurance pay-outs are normally paid directly into the​ mortgage holder's bank account one month in​ arrears.
Pay-outs on​ mortgage payment protection insurance are often limited to​ a​ set insurance period .​
Depending on​ the​ insurance company,​ monthly protection payments over six months or​ twelve months from the​ first mortgage protection pay-out is​ normal .​
As two out of​ every ten people who are made redundant take over a​ year to​ re-establish themselves in​ a​ new job,​ mortgage payment protection insurance could mean the​ difference between keeping your home or​ losing it.




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