If you were to lose your income by coming out of work after suffering from an accident, prolonged illness or through unemployment then you could be left with a serious struggle on your hands to find the money to continue meeting your mortgage repayments. Providing that it would be suitable for your circumstances then mortgage insurance could give you the income you need to keep your home.
Mortgage insurance would payout a tax free income each month you were out of work for up to 12 months and though some providers offer cover for up to 24 months. The policy would give you a monthly tax free sum after you had been out of work for a certain length of time which can vary among the policies and can be anything from 31 days to 90 days with the majority of providers backdating the cover to the first day of coming out of work.
This income would give you peace of mind and security during hard times but it isn’t suitable for all circumstances and you have to ensure that it would be suitable for yours before you buy mortgage insurance. Some of the usual reasons which could mean a policy wouldn’t be suitable for your circumstances -employed, retired or if you are only in part time work. Of course it is essential that you check the key facts and exclusions of any policy you are thinking of buying as they can vary slightly from provider to provider.
Although mortgage cover – or ASU insurance as it is sometimes called – can be purchased when you take out your mortgage with the high street lender, this is often the dearest way of buying the cover and it can add literally thousands of pounds more onto the mortgage than it needs to. The cheapest premiums can be found with a standalone specialist provider of mortgage insurance and along with securing the cheapest possible policy you can also benefit from the advice a specialist will give.