The last year has been difficult for all of us but has also showed us how important it is to be protected, just in case. One way to feel more protected is to take out mortgage payment protection insurance. Here’s what you need to know.
Why would I need it?
For the majority of homeowners, their mortgage is their biggest monthly outgoing. So, if losing your job or not being able to work due to an illness or accident means you’ll struggle to pay it each month, it’s sensible to protect yourself.
There are varying levels of mortgage payment protection insurance you can take out depending on what you want to be covered for. These are ‘unemployment only’, ‘accident and sickness only’, and ‘accident, sickness and unemployment.’ The level of cover you take will help determine the cost of the premiums.
But, you need to bear in mind that due to the pandemic, some insurers have added Covid-related exemptions to their policies, so make sure that you check before you take out any protection. Many providers have also begun to cover people who are self-employed. However, it’s always important to make sure you check the small print carefully to make sure you’re not exempt.