Mortgage Protection Policy - How Does It Help?

By Author: Vijay K Shetty
Total Articles: 129
Comment this article

The biggest financial commitment you've ever had is your mortgage loan. Being consistent with your payments serve you good in the long run. Timely payments reflect positively on your credit report. You also get to hold on to your collateral and there would be no risk associated with it. There may be insurance cover for both employed as well as self employed. Choose for a more comprehensive package which covers accident, sickness and unemployment.

If you were to fall ill, become bed ridden or meet with an accident, you must take precautionary measures to protect your income. Incase of an inevitable occurrence, you will be paid by the mortgage insurance company. Your redeemed amount will cover up your monthly mortgage payments. Besides this, you will also get to cover up your grocery bills, medical bills and other expenses. Your sickness, inability to work, accident or redundancy will not hamper you from making your monthly secured loan payments.

You may wish to take a separate cover for redundancy. For this, you have a different option known as redundancy protection insurance cover. These standalone policies will ...
... cover separate sections and are not comprehensive and inclusive of all. For a more comprehensive cover, you can opt for payment protection insurance which covers all the aspects.

In a nutshell a mortgage payment covers:

- It is an Accident, sickness and unemployment protection cover.
- You will be paid a compensation each month for your monthly expenses.
- Financial compensation is paid till you resume back to work.
- It will be paid directly to you, in addition to any other benefits

Take advantage of a comprehensive policy right away! Most companies will pay some level of sick pay if their employee is off work due to sickness or injury.

The issue is that sick pay only lasts for a short period of time and not all employers pay full salary sick pay. If the employer pays full sick pay then an individual considering MPPI should set the deferred period of their policy equal to the length of their sick pay.

Vijay K Shetty, Platinum Author. For more information: Mortgage Payment Protection


Get more information: Redundancy Protection Insurance