Mortgage and Loan Repayment Protection
If you should become disabled, employers usually cover sixty percent of your salary. If you have a payment protection plan to take care of your mortgage and loans while you are out of work it should be a tremendous relief to your mind and pocket book as your savings, if you have any will probably be depleted fast. Mortgage payment and loan protection insurance were developed to help you take care of certain debts. Both policies give you a tax free amount each month to make your monthly commitments. Mortgage protection can help with house insurance and related expenses. An income protection insurance will also give a tax free monthly income and it can be used for food, medical expenses, etc...
Once the claim is made you will probably receive benefits for between twelve and twenty four months or until you are able to get back to work. Be sure to read the small print on these policies to know exactly what you are getting. No one knows when something is going to happen and then repossession becomes a big worry. A pretty high percentage of mortgage payment protection plans are accepted. Most claims do not last over six months. Everybody thinks it will not happen to me but financial disaster very well could. If you loose your home and have to start over from scratch it could become the nightmare of your life. If there is no regular income coming in, it is not going to be possible to reach any type of agreement with creditors.
There are different levels of protection. Your protection can be unemployment alone or unemployment, sickness and accident. Although the cost of the insurance is one of the elements to consider when buying the insurance, there are several other areas that have to be checked out. Find out what exclusions there are. Like all insurance polices you have to read the fine print. You need to know when the protection plan will begin to pay. Some companies will only allow a claim after thirty days of becoming unemployed or having an accident or illness, however, it could be for as long as ninety days. Some companies may still pay you back to the beginning of your unemployment. Make sure you know how long the insurance covers you. You might get payments for one or two years.
Mortgage repayment protection insurance has become big business in the United Kingdom; a lot of lenders sell it with the loan. About fifty percent of the buyers take the insurance. It has been found that there is a very small percentage of claims made and of these one forth are rejected. The lenders are being investigated by the authorities. A great deal of the lenders do not give enough of the information to the buyers and the exclusions are covered up.
When you make up your mind to get mortgage protection, you should know that although the lender usually will sell it to you there are other choices and the best thing to do is find the protection that fits your needs and expense account. Mortgage protection differs, there are many premiums and benefits offered. Research several of them before making a choice.
Both banks and lenders usually sell this type of protection insurance. If they give you any information make sure they are telling you all of the facts. It is not wise to purchase a policy from these people without looking at your other choices. Make sure you do not pay too much for poor coverage. There are many insurance companies selling different types of mortgage protection coverage. It might be that the lender has an excellent protection plan. But you do not want to guess on an issue as important as this. Before making your final choice with the protection insurance, find the cost of the policy, if you can make monthly payments along with the mortgage and it can be canceled at your discretion, well and good. If you are going to pay for it in a lump sum, its time to consider buying elsewhere. Know how the funds are going to be dispersed, if the underwriter is a good one and any other things that are relevant.
If you own a home and want mortgage protection inquire with the insurance agent that you already have to see if his company handles it. Having your policy with the same insurance company could save you money in the form of a discount from combined policies. If they do not have mortgage insurance they may have term life which may be used as a substitute. With a mortgage loan the mortgage will be paid with the death of the insured but there will be no money for anything else. With term life insurance the mortgage can be paid, depending on how much insurance is carried other bills and expenses can be taken care of.
There are many companies both national and international that offer mortgage protection and also term life insurance. They can be found on the internet. Quite often the rates are better with the companies listed on online.
With so many companies offering mortgage protection plans it might be easy to get confused as to which one is the best buy and offers the most for your money. Do a lot of researching and checking to see that the companies are reputable and live up to their policies without using far out excuses for non payment. Some policies pay if the party that is insured becomes deceased and some offer additional protection. These can cover time off of work for accidents or disability but put a limit on the amount of time payments will be made; usually in a time frame of twelve or twenty four months. Give a lot of thought to the policy you choose. Think of the balance on your mortgage, the types of insurance that is already being carried and the earning capacity of members of your family living in the house.
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