Mortgage Payment Protection

Buying a house is a great accomplishment. Managing to always make the mortgage payments is an even greater accomplishment. In these economic times, financial stability is never guaranteed. That’s why it pays to buy mortgage payment protection in the form of income protection insurance.

The Terms of Mortgage Payment Protection

Mortgage payment protection policies are designed to pay the monthly mortgage in addition to up to 25 percent of other household bills. As an alternative, some policies offer benefits of up to 75 percent of your gross monthly income. These benefits will remain active for as long as the policy holder pays the monthly premium in accordance with the predetermined terms of his policy.

You are qualified to purchase mortgage payment insurance if you are self employed, a contract worker, a sub-contract worker or an employee of a company. Maximum salary limits do apply. In most cases, loan protection benefits will not exceed £1,500 a month.

Eligibility for Claims

Anyone who has lost their job, experienced an accident or become seriously ill is eligible to begin receiving the benefits of their mortgage payment protection policy. Claims begin paying benefits after the deferral period has ended.

Tax Free Benefits

As long as the monthly premiums are paid with money that derives from taxable income, the benefits of the policy are tax free. This enables homeowners to keep possession of their property while they recover or find new employment.

Homeowners can ask for further details about the potential tax implications of mortgage payment insurance with either their financial advisor or one of our agents.

The Financial and Psychological Benefits

Anyone who has unexpectedly lost her job or suffered through an illness can tell you how disorienting and potentially difficult it is to remain financially solvent through such a crisis. That’s why mortgage payment protection programs are a wise investment. A temporary disruption in your life shouldn’t be the end to your hard-earned prosperity. Knowing that your mortgage payments are guaranteed will enable you to focus on your recovery and not on your bills.

Most homeowners are financially responsible for the needs of their families. It’s important to be able to promise your children that they will always have a roof over their heads and a full meal in front of them. Mortgage protection insurance provides the kind of rock-solid assurance that children need to grow up into strong, healthy adults.