A mortgage is often the single largest financial commitment that a lot of men and women make throughout their lifetime.
Yet fewer than half of all residential mortgage holders decide to take on the security of the mortgage repayment capacity with insurance.
Mortgage protection insurance, or mortgage payment protection insurance, is a kind of insurance that guarantees mortgage payments are met should the mortgage become jobless, fall critically sick or be not able to earn income because of a crash.
This sort of protection insurance program is very cheap to keep and enables mortgage holders to establish an insurance policy amount for monthly security pay-out that insures mortgage expenses and extra costs up to a set percent over mortgage outgoings.
Most mortgage payment protection insurance policies are strict on protection insurance claims.
For instance, should the mortgage holder become unemployed through their own free will, then they would not be covered by the mortgage payment protection insurance policy?
However, redundancy does qualify for payment through the protection insurance policy, providing that the mortgage holder actively seeks new employment.
Additionally, mortgage protection insurance may not pay out if the claimant takes on voluntary or part-time work, although the protection insurance terms & conditions relating to this area will vary with each type of mortgage payment protection insurance product.