Mortgage Payment Protection Insurance
Below is a MRR and PLR article in category Finance -> subcategory Insurance.
Mortgage Payment Protection Insurance
Overview
A mortgage is often the largest financial commitment for most individuals, yet fewer than half of homeowners opt for mortgage payment protection insurance to safeguard their repayments.
What is Mortgage Payment Protection Insurance?
Mortgage payment protection insurance provides coverage to ensure your mortgage repayments continue if you become unemployed, critically ill, or unable to work due to an accident. This insurance is typically affordable and allows you to set a monthly payout amount to cover your mortgage and additional expenses within a specific limit.
Eligibility and Conditions
Policies for mortgage payment protection insurance come with specific requirements for claims. If unemployment is voluntary, the policy generally won't cover it. However, if you're made redundant and actively seeking new employment, it does qualify for a payout. Note that taking voluntary or part-time work can affect your claim, depending on the policy's terms and conditions.
Waiting and Payment Periods
There's usually a qualifying period of 90 to 120 days before the insurance begins payouts. After this period, if you're still eligible, the protection payments start on a monthly basis.
Claim Process
Insurance companies often require monthly renewal of claims, which involves submitting forms and sometimes providing documentation, such as a doctor’s note or proof of job applications. Payments are typically made a month in arrears directly into your bank account.
Coverage Duration
The payout period is usually limited, often covering six to twelve months from the first payout. Given that 20% of those made redundant take over a year to find new employment, this insurance can be crucial in preventing the loss of your home.
By considering mortgage payment protection insurance, you can secure peace of mind, knowing that in uncertain times, your home remains protected.
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