Mortgage protection insurance can work for you but it can only do the job it was designed to do if it is bought correctly with your circumstances in mind. It is the exclusions which stop the product from working for your particular circumstances and these are what you have to bear in mind before purchasing your policy.
Common exclusions within most mortgage protection insurance polices include only being in part time work, being retired, self-employed or suffering from a pre-existing medical condition at the time the policy is taken out. Of course there are many more and these can be found in the small print of a policy and within the key facts and must be understood.
Providing a mortgage protection insurance policy is suitable for your needs then it can be a lifeline if you were to find yourself out of work due to an accident, sickness or through unforeseen redundancy. You can choose at the onset to guard against coming out of work due to accident and sickness only, unemployment only or accident, sickness and unemployment together.
Cover would begin to pay out once you had been out of work, usually for 30 days or more and would then provide you with a tax free monthly income which would continue to meet your monthly mortgage repayments and help you to keep the roof over your head for up to 12 months (and with some providers, for up to 24 months).
Quotes for the cover do vary and it is essential that you get several quotes before making the decision to buy. The easiest way to get several quotes for comparison is to go with a specialist provider and let them shop around for the cover for you; you do however have to read the small print and understand the key facts of a policy before buying if you want to ensure that mortgage protection insurance would work for you.