Mortgage Protection Insurance

The majority of people who own homes risk losing their homes if a catastrophic event happened in their lives. A young couple starts out together; they purchase a home and take out a mortgage; buy or lease a car; have a family and raise the kids while each pursues their career and hopefully reach that point in their lives when the mortgage is fully paid and suddenly they have a lot of free money to spend that went into the house mortgage. Sounds great doesn’t it? It is and the majority of people achieve this dream, however many people experience a few bumps along the way and a few experience major bumps. Mortgage insurance is one way to smooth out things out and ensure you do not have to worry about losing your home.

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Some Reason I might want to Consider Mortgage Insurance

The following are a few reasons you might want to consider mortgage insurance. Each person will have a personal situation to deal with, so it is important you apply these and others we may not have mentioned when making your decision. Here they are:

Long term sickness of you or your spouse Job loss, whatever the reason adds pressure to making the payments Some of us will die due to a heart attack or stroke or an accident, etc.

What ever the reason, paying the bills including the mortgage becomes a lot more difficult and disability and Income support may or may not be available. With all of these unknowns, mortgage insurance in the UK sounds like a good deal.

Types of Mortgage Insurance
There are several types of insurance. The first kind of mortgage insurance essentially is term life insurance and will pay off the balance of the mortgage if you were to die during the term of the insurance.

The second type of insurance protects your payments ie makes your payments, in the event you should have a long term sickness and cannot work or you become redundant.

Consider your personal situation very carefully before deciding on the type you will need.

Some Variables to Consider

You have decided to purchase insurance, here are some of the terms and conditions to think about as you ponder which one to
purchase:

Benefit period – how long will you receive monthly payments Excess period - an amount of days that are excluded from the payment Waiting Period - a period of time you have to wait for your claim to be paid Extra payments - Some mortgage insurance companies will allow extra payments up to 25% to cover insurance etc. Exclusion period – length of time in which you cannot make a claim at the beginning of the insurance

All of these may have conditions, so make sure you understand very clearly how they can be used. Most companies will give you a quote and approve insurance for you at any time during the mortgage provided you meet their conditions.

Finding the right company.
There are many sites online that offer insurance of all kinds. Our directory of life insurance companies is a good place to start. Select one of them and talk to a consultant about your needs and also your concerns. Some of the questions you need to ask and steps you need to follow are:

Obtain as many free quotations as you like to ensure you have a good deal Confirm both the price and the term Discuss which type of mortgage insurance will fully meet your needs. Ask about all of the terms. Ask if there are any waiver options and their price? How quickly would the benefit be paid? What documentation do your survivors need to provide in the even of death? Can I name a beneficiary or must it be paid to the estate or to the loan company?

Once you feel comfortable with the initial contact, talk to a few other insurance company consultants to compare plans and cost.

Summary

Calculate how much insurance you need Consider if mortgage insurance will fully meet you and your families needs. Obtain several quotes to compare prices Utilize our online directory to get some of the best online quotes Confirm all details to ensure that you receive the insurance you need.