Archive for February, 2011:
Protecting your home
A home-owners worst nightmare is to have their home repossessed. This is what can happen if you miss mortgage payments and end up in arrears. There are many reasons why people miss their mortgage payments. Many people fall ill and as a result can not work, some employers will not pay whilst you are off sick which mean you have no income. In Other cases job loses also mean mortgage payments can not be met.
The best way to protect your home is by taking out mortgage payment protection insurance. Like most other insurance policies you will pay a premium each month and will pay out if need be. In the event of sickness or death your mortgage could potentially be paid off in full. Payment protection will cover your mortgage payments and any other similar expenditure that relates to the building such as buildings insurance. When taking out a mortgage there are no legal requirements for you to have mortgage payment protection but it would be advised, even more so if you have young children and you are the main earner in the household. If you are diagnosed with an illness you may be due benefits from the government but this will not be enough to pay your mortgage and cover any living costs.
Before taking out any kind of mortgage protection you need to look in to what you will be covered for. If you have a family history of illness you need to check that the insurance will cover this. When applying for the policy you should make sure you are as accurate with your medical history as possible as your insurance could be null and void if you have made a mistake or lied in any way. Insurance companies can be hesitant to pay out great sums of money so you should try and make it as clear as possible