A home owners worst fear is missing your mortgage payments. This could lead to repossession and this is why mortgage protection can be a really effective product. However, lots of people pay a crazy amount of money for mortgage protection when they don’t need to.
Unfortunately some of us get sick and this leads to us not being able to work. Long-term sickness that prevents you from working or redundancy can hit you hard. It often comes when you least expect it and that’s why we should plan for this. Basically, mortgage protection insurance means your monthly repayments get covered if you can’t pay them. Typically a policy will cover your payments for a couple of years and will pay around 65% of your income or £2,000 a month. It’s usually whatever is lowest. This provides you with the protection you need when you need it the most.
Consider your position before you buy any insurance. You’ve got to make sure that your insurance you’re buying is right for you. Your circumstances might mean you don’t need cover for an accident, sickness or redundancy.
You might find it unnecessary because you could get help from the Government with your mortgage. The size of your mortgage, savings and what the chances are of your house being repossessed will all affect how easy it is to claim. The majority of the time the government will only pay your interest.
If you’re off all your job might give you a generous pay if you have an accident at work or if you’re on long-term sickness. Some other policies might pay out too.
When you take out a mortgage you can probably expect that they’re going to try to sell you protection too. You get several forms of protection but usually, it covers your loan if you lose your job or become disabled or it will pay off your mortgage if u die. Would you benefit from mortgage insurance? a lot of people assume it’s just another way for companies to siphon some extra cash from your wallet. The answer to this kind of depends on your health.
One of the best things about getting mortgage life insurance is the peace of mind it gives you. Knowing your dependents have what they need is great, it’s fewer things to worry about. Mortgage life insurance is tied to the path of your mortgage too which guarantees that will be the outcome of what your desire. There’s absolutely no chance that the money can be spent on something else.
There are negatives too, usually, the payments remain constant even if your death benefit drops. A lot of people don’t think mortgage life insurance is necessary but personally, I recommend taking the largest term life insurance policy you can afford and use part of the process to pay off the mortgage on your home when you die.
Check out hello.ie and see how they can help with your insurance.
September 9, 2017