Mortgage Protection Insurance
What Do You Need To Know About Mortgage Protection Insurance?
For all your Insurance & Financial Needs
What are the differences and how do you tell which redundancy, mortgage, income protection insurance policy is the right one?
A mortgage and income protection insurance policy is there to provide a temporary backstop while you are unwell, injured, or otherwise unable to work.
The differences are primarily in the benefits paid, type of bills covered, and duration of benefit.
Differences Between Mortgage Protection Insurance And An Income Protection Insurance Policy
While a mortgage protection insurance policy covers one very specific bill – your mortgage – income protection insurance policy pays out a portion (or sometimes the equivalent amount) of your usual income for use as you would normally spend it.
There are pros and cons to both types of policy, while it might seem more broadly useful to receive even a portion of your normal income – your expenses might be higher due to medical bills. In that case, a mortgage protection insurance policy might better serve you as it will make sure that you don’t fall behind on your debt and helps keep a roof over your head regardless of your other costs.
This might be a good policy to combine with other types of policy to ensure that you and your family have as little disruption as possible while dealing with your inability to work.
Redundancy Cover VS an Income Protection Insurance Policy
An income protection insurance policy might cover you if you are made involuntarily redundant, but redundancy cover won’t pay you if you become ill or injured and need to take time off of work – generally speaking.
Of course, there are always special products which combine insurances and these are worthy of consideration.
Can You Get A Mortgage Protection Insurance, Redundancy Cover, And Income Protection Insurance Policy?
In theory, yes you can get a mortgage protection insurance, redundancy cover, and income protection insurance policy combined into one. By utilizing a broker or doing some research, you may well find a reputable company offering a combined policy that can bestow the benefits of all three types of protections discussed here – the premium may even be lower than getting each type of policy separately.
Is Mortgage Protection Life Insurance?
No! Although, with some life insurance policies mortgage protection insurance is included in a way. Depending on the type of life insurance, the benefit specifics, and the conditions of the policy – mortgage payments may be specifically accounted for in the payout should the policy holder pass away while being responsible for mortgage payments.
This can also sometimes be negotiated if the beneficiaries of the life insurance policy are unable to meet mortgage payments, or done manually by them when they receive a lump sum payout.