Mortgage Payment Protection
“It could never happen to me”. “I’ll sort it out later”. How many times have you heard or thought that? The old adage of “failing to plan is planning to fail” is no better suited than to the ignorance of crucial decisions on protection.
What is it?
A Mortgage payment protection plan is designed to ensure that you are able to make payments for your mortgage and other related expenditure in the event of an accident, sickness or unemployment. It’s often referred to as Accident, Sickness or Unemployment cover, or ASU. These plans usually pay benefits for up to two years- however, if you’re seeking a plan that pays over a longer period, then you might find Income Protection Insurance more suitable for your needs.
It’s worth noting that there’s currently no legal requirement to have such cover. Because of this, in recent years, potential mis-selling of these products has generated much interest from the media and industry regulator. That said, it does not mean it’s not right for some people and can provide valuable and necessary protection in the right circumstances.
Who is it for?
This type of plan is designed for those who are worried about their ability to continue mortgage payments in the event of loss of income due to accident, sickness or unemployment.
It’s extremely important and highly advised that you seek financial advice before taking out this type of plan as they are not always the cheapest or most appropriate option for you.