Mortgage Payment Protection
Buying a house is a great accomplishment. Managing to always make the mortgage payments is an even greater accomplishment. In these tough economic times, financial stability is never guaranteed. That’s why it pays to buy payment protection in the form of mortgage income protection insurance.
The Terms of Mortgage Payment Protection Insurance
A mortgage protection plan is 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 or her 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 income protection policy. Claims begin paying benefits after the deferral period has ended.
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 attempt to find new employment.
Homeowners can ask for further details about the potential tax implications of mortgage payment protection insurance with either their financial advisor or one of our specialist agents.
The Financial and Psychological Benefits
Anyone who has unexpectedly lost their 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 a mortgage protection plan is 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 your bills.
Most homeowners are financially responsible for the needs of their families. Therefore, it’s important to be able to promise your children that they will always have a roof over their heads and full meals to eat. Mortgage income protection provides the kind of rock-solid assurance that benefits the entire family.