Mortgage Payment Protection – Financial Safeguard When You Need It

2007-03-08 10:33:40

( Financial )



When you take out a mortgage, you’re committing yourself to a long-term obligation. Mortgages usually have 10 to 30 year payment terms and over this long period there is just no way of knowing how your personal circumstances will turn out or if you will be as capable of fulfilling monthly payments 30 years down the road as you are now.

Mortgage Payment Protection is an insurance product which you can use to continue paying your mortgage when you’re forced to give up your work due to accident or illness. When the unexpected happens, having a Mortgage Payment Protection gives you the security that you will be able to keep your home and your property will not be repossessed. It covers your mortgage repayments for a fixed period of time while you recover from illness or accident and find employment.

If your mortgage lender is offering a Mortgage Payment Protection but a high price is keeping you from getting it, you will be glad to know that you don’t have to get this insurance from the same mortgage lender and it doesn’t have to be at the same time you obtain your mortgage. You can get mortgage payment insurance from a third party at any time.

This means you can pick a payment mortgage insurance that you will be able to afford. The secret is to get multiple quotations and compare price. Researching online is a fast and inexpensive way to find competitive insurance.

However, you cannot always go with the cheapest deal. Review the insurance policies carefully as most of the time these policies are based on specific circumstances. For example, casual and seasonal employees are usually not covered with this kind of insurance. There is also a policy on the minimum period you are unemployed to make a valid claim, usually from 30 to 60 days. Make sure you are aware of the exact terms and conditions of the policy before getting one.


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