Ensure you have adequate cover - consider a mortgage protection plan
- 23RD DECEMBER 2007
If you were to suddenly find yourself out of work for any length of time you could be left severely struggling to find the money each month to continue making your mortgage repayments. Any savings you had could soon be depleted if you were out of work for any length of time and the State simply cannot be relied upon to give you the money. If you want to have adequate protetcion in case you should find yourself unable to work through suffering an accident sickness or due to unemployment, then you should consider taking out a mortgage protection plan.
You do have to make sure that a mortgage protection plan would be suitable for your needs; there are exclusions which could mean you would be ineligible to claim. Common reasons include being retired, self-employed, suffering an ongoing illness or only working part time and these are defined in the small print of the policy.
When bought correctly a mortgage protection plan can start to give you a tax free income once you have been out of work for between 31 and 90 days depending on the provider. Cover can then continue for between 12 and 24 months although some providers policies will not begin to payout until you have been out of work for up to 90 days and can continue for up to 24 months.
Once you have determined a mortgage protection plan would be suitable you then have to find the cheapest quotes for the premiums and they can vary widely. British Insurance offer one of the cheapest quotes which can save you up to 40% on the cost of the cover and along with this they give you the information you need to make an informed decision regarding the suitability. You do have to read the small print because a lack of information regarding the cover is what causes the cover to get a bad name.
