Only in recent years, mortgage protection has become a topic of discussion due to the huge fall of housing and other real estate values in a serious way. The good news now is more and more insurance companies are offering homeowners a chance to get low cost coverage that may help them to keep their home safe from repossession and protect their family’s financial future.
By paying monthly premiums, homeowners can cover their real estate value by 40 to 80 percent, depending on the type of plan the borrower opt for. We all know that missing a few mortgage repayments could lead our property to repossession and that would be one of the worst things that can happen in our lives.
However, what if we are not able to work because of some illnesses, accident or being forced out from employment? This is where mortgage protection benefits the most. They will cover you with an amount of tax free money determined from the monthly income or mortgage payments until the term ends. Within this period of time, you will be less stressful to find another job or recover from your illness.
People who had never been exposed to these products may ask why do we need such a protection, when our money is already stretched out and assume it as just another expense that is not really necessary. This policy actually has some similarity to the income protection insurance, but mortgage protection is a kind of shorter term insurance.
Really, to decide whether it is worth paying for the protection, you have to take serious consideration about the odds that unforeseen thing which might cause you to not be able to pay your repayments. Then, weight it up against your employment status, health condition and the disadvantages of paying the premiums.