Your home is your sanctuary. It is the place that you go to when life seems to be hitting you a little too hard. But what happens if your home is suddenly taken away from you? You’ll be left with nothing but the clothes on your back and the streets to call your bed.
Unfortunately, this situation is not just the products of a frightening nightmare that you can wake up from. Many people have lost their homes because they’ve suddenly lost their jobs and are unable to pay their mortgage. It’s a sad reality, but it can be prevented. The answer lies in a mortgage payment protection plan.
Mortgage payment protection is a type of insurance that helps you cover your house payments when you find yourself suddenly out of a job, or unable to work because of an illness or disability. Sadly, only 25% of homeowners across America have this plan despite dozens of companies offering them.
How much of my mortgage will be covered?
Accidents or lay-offs aren’t circumstances that you’d always expect to be in. So having a mortgage payment protection plan gives you peace of mind because at least, you know you’ll still have a house to go home to despite the unexpected.
It works much like any insurance policy; you pay a certain amount of money, depending on the type of coverage you want. Some mortgage payment protection plans offer to cover your entire mortgage for up to a year. That gives you plenty of time to find a new job and get back on your feet before you have to take over the mortgage payments.
There are also other, cheaper options available. Some companies can lower the price of your premium by lowering too their share in your mortgage bills. This is a good option of you’re able to save some money, or if you have a source of income other than your main job.
Other policies can offer to pay more than 100% of your mortgage. For a bigger premium payment, some companies can pay your entire mortgage, plus an additional payment of up to 50%. This is a great deal because not only are you able to keep your house, you’re also able to take care of your other bills such as gas, electricity, water, and the school fees of your kids.
How long will I be covered for?
Mortgage payment protection plans vary per company. Most companies however offer payment plans that stretch up to 1 year. For an additional payment, some companies even offer to cover your mortgage bills for 2 years. All of these will depend on the policies of the company that you choose to sign up with.
How long before the company takes over the payments?
Again, this depends in the company’s policies. Most mortgage payment protection plans take effect within 30 â€" 60 days after your termination from work. The number of days can vary depending on the circumstances of your termination, or the speed of the insurance company’s system.
Some insurance companies even start their coverage back to your final day of employment. Again, this would depend largely on the contract that you’ve signed up for.
Is this policy a scam?
Unfortunately, many homeowners have been fooled by mortgage payment protection scams by companies that are either illegitimate, or legitimate but do not have the capability to pay out. It’s good to do a little background check of the person or company that’s offering you this type of plan before you sign up for anything.
The only thing that’s permanent in this world is change. And change isn’t always a good thing, especially if you find that you’re losing your house because of it. You owe it to yourself and your family to have your home protected from suddenly being taken away because of your inability to pay for it. Think about getting a mortgage payment protection plan for your home. The money you’ll initially spend is surely worth the assurance that if worst comes to worst, you’ll still have a house to come home to.
Author Resource:
Unbeatable Quote UK are a well established and prestigious provider of fair and accurate mortgage payment protection insurance quotes for homeowners across the UK. Having the resources, expertise and knowledge to source highly beneficial solutions to ensure that under certain circumstances, with Unbeatable Quote UK you can be sure of a specialist and professional company to offer excellent assistance.
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