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. Continue reading