Mortgage Protection insurance is a way of making sure your monthly mortgage payments are met in the event of unemployment caused through accident, sickness or redundancy. This insurance can also be known as Mortgage Payment Protection Insurance.
Its always worth asking the 4 following question to help you assess the need for mortgage protection:
1. Who would be effected if you were unable to make your mortgage payments?
2. How would they be effected and what impact would this have on their daily life? (Remeber this is you and your family)
3. What would be the ideal situation if you were unable to make mortgage payments due to unemployment?(reminder that mortgage payments are made for you with Mortgage Payment Protection)
4. How important is it to you that the ideal situation identified in question 3 happens?
It's also worth remembering that if your insured you have:
- Cover in the event of unplanned circumstances such as loss of life, accident, sickness and involuntary redundancy preventing you from making your payments.
- Protection from bad credit history for missing payments
- Peace of mind knowing you have a contingency plan in the form of PPI in place if the worst happens
It is always worth checking the terms and conditions of the Mortgage Protection with the insurer prior to acceptong their offer of cover as most policies differ slightly.
Rainbow is a trading style of Havering Financial Consultancy who is an appointed representative of Intrinsic Financial Planning Limited which is authorised by the Financial Services Authority