Mortgage Insurance Explained

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Getting a mortgage is bad enough - what withjob, or get well etc.
terms like fixed rate, discount, variable etc - soMany people may think that mortgage payment
mention mortgage insurance and naturally yourprotection insurance is a waste of money, using
eyes will start to glaze over.the old adage "It'll never happen to me". However,
However, mortgage insurance is an extremelythis is not true. Being unable to work - and
important insurance to have - in fact, it can thetherefore having to struggle on state benefits -
difference between keeping a roof over yourdue to involuntary redundancy, accident or
head or ending up having your home repossessed.sickness can happen to anyone. It does not
If you recently took out a mortgage, you maydiscriminate and can strike anyone at any time.
remember the lender asking you whether youTherefore, if you are in full time employment for
wanted mortgage payment protection insurance.more than 16 hours a week and you have a
It probably sounded expensive and unnecessary.mortgage, then taking out insurance against the
And while, in some cases, there are companiesfinancial ramifications makes sound sense.
who like to charge you too much for the product,Despite what the press says, it doesn't have to
it doesn't have to be that way.be expensive to take out this kind of insurance,
As for it being unnecessary - get the right policyand nor do you have to take out a policy with
and at the right price and it will be an invaluableyour current mortgage lender. This means you
safety net for you. So, what is mortgageare free to shop around to get a policy that
insurance? It is a product whereby should you beoffers you comprehensive protection without a
unable to meet your mortgage repayments duehigh price tag!
to being made involuntarily redundant or due toIf you are looking for mortgage protection
being able to work because of sickness or maybeinsurance, then do not automatically accept the
an accident - then it will cover your mortgagefirst quotation you get - premiums can vary
repayments.wildly, as can the terms of the policy and the
Your mortgage repayments (and sometimesbenefits.
other mortgage related outgoings too) will beDo your research - the internet is a quick and
covered for up to a set period of time (typicallyeasy way to compare policies - and then make a
12 months but this can vary from provider todecision from there.