Mortgage Payment Protection Insurance

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					Mortgage Payment Protection Insurance

A home loan is the single biggest financial commitment that lots of people make throughout their
lifetime, yet fewer than half of all residential mortgage holders choose to take on protection of
their mortgage repayment capability with mortgage protection insurance.

Mortgage protection insurance, or mortgage payment protection insurance, is a type of
insurance that guarantees mortgage repayments are met should the mortgage holder become
unemployed, fall critically ill or be unable to make income due to an accident. This kind of
protection insurance product is quite inexpensive to maintain, and allows mortgage holders to
set an insurance amount for monthly protection pay-out that covers mortgage costs and
additional expenditures up to a set percentage above mortgage outgoings.

Most mortgage payment protection insurance plans are rigid on protection insurance coverage
claims. For instance, should the mortgage holder become unemployed through their very own
free will, then they wouldn't be covered through the mortgage payment protection insurance
policy. However, redundancy does qualify for payment through the protection insurance policy,
providing the mortgage holder actively seeks completely new work. Furthermore, mortgage
safety insurance coverage may not pay out in the event the claimant takes on voluntary or part-
time work, although the protection insurance terms & conditions regarding this area vary with
every type of mortgage payment protection insurance product.

Typically, mortgage holders will need to endure a mortgage payment protection insurance
qualifying period before getting money protection pay-outs. The qualifying period on home loan
payment safety insurance policies is normally 90 - 120 days. If the mortgage holder is still
eligible for mortgage payment protection insurance following this time period, then protection
payments are started for a monthly schedule.

Insurance coverage firms frequently require holders of mortgage payment safety insurance
coverage to renew their mortgage protection insurance claim on a monthly basis by filling out a
form. Sometimes the insurance companies will ask for proof from the mortgage holder so they
can evaluate the mortgage holder's eligibility for the continuation of mortgage protection
insurance payments. This could be a doctor's note of illness or copies of job applications if
claiming mortgage payment protection insurance pay-out because of redundancy. Mortgage
payment protection insurance pay-outs are usually paid directly into the mortgage holder's
account one month in arrears.

Pay-outs on mortgage payment protection insurance are frequently restricted to some set
insurance period. Depending on the insurance company, month-to-month protection payments
over six months or twelve months from the first mortgage protection pay-out is typical. As two
out of every ten individuals who are made redundant take over a year to re-establish
themselves in a new job, mortgage payment protection insurance could mean the difference
between keeping your home or losing it.

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