Protect you mortgages with proper protection cover

Life has a funny way of throwing curve balls at us and there are very few who are well prepared to fend them off and hit for a six. Life is not that straight forward for all and so it is always best that you plan and save for the future. At the risk of sounding preachy a stitch in time saves nine and so insurance is a great way to safeguard the future.

Mortgage Protection Insurance is an insurance policy that ensures that your mortgage instalments are taken care of in case you are unable to make the necessary payments because of an accident where you cannot work anymore, a disability, death or involuntary unemployment. How this policy works is that you pay a premium every month which is calculated based upon your salary and the pay out that you will require in the future. This policy amount can then be claimed in case you are unfortunately involved in the above stated events and cannot provide income anymore.

The claim is generally paid out within a month to 90 days depending upon the case, this period of waiting is also enforced as they are hoping that you will be able to get back up on your feet and be able to provide a source of income again and will not require the claim. Also this waiting period allows the insurance companies to investigate whether you truly cannot earn anymore or not.

For a full and better coverage you can even club it with a life insurance policy. Mortgage Protection Insurance can be claimed under these circumstances:
Death: in case of death most insurance companies will pay off the balance amount of the loan amount in full and this provides an extremely secure option for your family members.

In case of Trauma:

Trauma policies and mortgage policies vary here, but in most case though it may vary from company to company, they pay out in case you are suffering from trauma arising from life threatening diseases like chronic kidney failure, coronary artery surgery, cancer, stroke, major organ transplant, etc.

Disability or Accidental Injury

In case you suffer from disability arising from illness of accidental injury which does not allow you to work anymore then mortgage insurance will cover this payout. This policy does not pay for pregnancy however unless there have been some medical complications.

Involuntary Unemployment

Mortgage insurance covers you only if you have lost your job involuntarily. If you are fired, take voluntary redundancy, or are let go because of misconduct or any illegal activity then the insurance company will not payout.