Protect Your Mortgage As Well As Yourself

Many of us who own our own home and have a mortgage will have a mortgage protection policy. Usually our mortgage provider has asked us to take out a policy with them but we are not always sure of the reason why. It could be vital to your financial well being as well as peace of mind to take out this sort of cover in the event that we cannot pay the mortgage.

During times of economic instability, mortgage insurance can be one way of making sure there is a safety net in place should an adverse circumstance occur.

The fear of losing a job or becoming too ill to work can be two of the most important factors in a decision to take out this sort of cover – should employment cease, mortgage payments can still be paid by the provider.

If a mortgage is held jointly, the death of one half of a partnership could severely cut a household's income - and this can also be a reason for taking out a policy. The remaining partner will have enough to deal with without having to worry about where the money for the mortgage payments is coming from.

Those who contract a critical illness – such as cancer – may find that this type of cover also relieves some the strain of their situation, meaning they can enjoy their final days rather than having to find money to pay their mortgage.

Although it is not widely compulsory, some firms who offer loans for purchasing houses may insist on having mortgage protection in place along with buildings insurance. Often mortgage protection insurance is required on loans of over 80% of the value of the property.

There can also be crossovers with life insurance policies and other related products. It is worth talking to an independent financial adviser to make sure you are getting the best deal for your individual circumstances before you make a commitment.

If you would like to know more about mortgage protection cover why not ask AnswerBank Business and Finance.