Useful Information ( Mortgage Payment Income Protection Insurance -
MPPI ) :
(Note: The
following information is general guidance, and not specific to
any product provider):
(Note: The following information is general guidance, and not specific to any product provider):
How Much is Mortgage Protection Insurance Worth ?
The majority of homeowners never stop to consider what would happen if they suddenly didn’t have the ability to make their mortgage payment. Yet everyday people find themselves facing sudden illnesses, a death in the family or a natural disaster that prevents them from having the necessary funds to pay their mortgage. With mortgage protection insurance
all homeowners can have the extra protection they need.
A lot of the people purchasing a home and financing a mortgage are young and healthy people. They don’t take time to look into what the future may hold and how it could interfere with their ability to make money. Accidents and illness, however, do happen and unless you have mortgage protection in place, you’ll be held full responsible for making your payments even if you are not fit to do so.
A common problem that people find themselves facing is being hurt in a car accident. Auto accidents can be very serious and depending on the job you do, you might not be able to go to work for several weeks or months. Although you are likely to realize a monetary settlement from the accident if you weren’t at fault that can take years. In the meantime you have a mortgage to pay and no job to do that. If you have mortgage protection insurance that includes accident coverage, your mortgage payments will be made until you can return to work.
The same thing with getting ill. Strokes, heart problems, cancer strike all the time and does not discriminate any age. A serious illness can prevent you from working the same way. Without a steady salary coming in, you risk the chance of losing your home to foreclosure. Having the right policy in place can cover you once you are no longer able to work. Usually a doctor is given your case and based on what he or she finds will help determine what you are covered for and how long. That is a good thing to have in place and not to worry about if, lets say, you have someone very ill worry about.
Most companies that offer funding for homes will have these types of policies available. The representative that you work with during the loan process will usually initially ask you about whether you are interested in mortgage protection insurance. Many homeowners turn it down because they are concerned with saving the few dollars a month it would cost. So ask yourself if you can afford not to have mortgage insurance protection. Just think about what you may risk losing if you don’t have it and the long term effects of a serious illness or accident.
For More Tips on
Insurance Protection For Mortgage Payments for you and your family. Visit The Financial & Insurance Tips Journal We can help guide you towards your insurance needs.
Don’t be fooled, there is absolutely no legal requirement to have Accident Sickness & Redundancy insurance cover, when getting a mortgage or re-mortgage and is not a condition of the loan, don't be pressured into buying MPPI from your bank or building society at largely inflated premiums. Often main stream banks have staff on incentive and target driven campaigns to sell Mortgage Insurance. Suitability to individuals needs and the high premiums have raised concerns if consumers are being treated fairly, and where policies are not as comprehensive by providers not readily available to consumers from the high street banks, the internet has great potential to serve you if used wisely.
New insurance rules allow you 30 days to cancel Mortgage Payment Protection Insurance - MPPI - from the original 14 days.
MPPI if considered and purchased with care has clear benefits, to protect and relieve you from anxiety and stress in the event of personal financial difficulty in the loss of your income...the government is keen to encourage Mortgage Payment Cover uptake….if you lost your income for the next 12 months to 24 months how would you meet your mortgage payments ?
(Note: The following information is general guidance, and not specific to any product provider):
Stop! Do You Need Unemployment Protection? | Recession Tips
During these times of economic turbulence and insecurity we all have a immense need for sickness, accident, unemployment & redundancy protection. Most of us have a mortgage, loans, credit cards, utility bills and everyday living expenses that would need to be paid if we were to lose our jobs through a redundancy, become ill or suffered an injury and be unable to work for a while.
With household budgets already stretched you should think seriously about protecting yourself and your family. If you or your partner lost your job through a redundancy and you ended up unemployed for a long period of time. How would you pay your mortgage and other bills? It is at times like this that debts start to rise as you struggle to meet your commitments. Then you start borrowing on your credit cards or taking out high cost loans and slowly your debts become bigger and you start to lose control and your debts spiral out of control.
It is impossible to predict whether you will find yourself unemployed or off work due to a long term illness or an accident. There are different types of protection insurance policies available today. You should consider taking out a protection policy to safeguard yourself from a financial disaster should anything happen to you or any of your loved ones. The Yorkshire Building Society recently estimated that the average Briton's savings would only last 52 days if they were unable to work and that 36% of Britons would only last 11 days. Scary isn't it.
The old adage of having a 'rainy day fund' looks like it is a thing of the past, with one in six people or 16% of us having to rely on credit to fund basic household breakdowns. 45% of Britons say that they could not afford more than £500 if an emergency arose and 20% of Britons said they could afford no more than £100, according to research carried out by the Alliance & Leicester. Based on these statistics it is important that you protect yourself.
There are two main types of Protection Insurance policies available:-
Accident, Sickness, Unemployment & Redundancy cover Generally known as Mortgage payment protection insurance (MPPI). It was designed to provide you with a monthly payment to cover your monthly mortgage payment and associated mortgage costs if you were to lose your earned income, through illness, accident, unemployment or redundancy. The payment period is often limited to a maximum of 24 months for Accident and Illness and 12 months for Unemployment and Redundancy.
Income Protection Insurance (also known as Permanent Health Insurance) This type of Insurance will pay you an income if you are unable to work due to an illness or injury and it usually pays out either until you return to work or you reach retirement age. Income Protection policies will usually pay up to 70% of you annual income. You can add redundancy cover to an Income protection policy. This type of policy may seem costly but it will pay you out for the term of the policy or until you reach retirement age in the event a long term illness, accident or redundancy that may lead to long term unemployment
Contributing author Mark Aucamp has been providing Talk Money Blog with regular Money Saving Expert advice and comments. Mark is recognised as an authority in the field of Debt Management and providing Quick Mortgage Advice. Mark has extensive experience in providing Advice & Solutions. To see if your Mortgage or Loan is invalid and unenforceable go LoanCheck for a free appraisal
Mortgage Payment Protection Insurance (MPPI or ASU) if considered and purchased with careful consideration has can have clear benefits worth considering, to protect and relieve you from anxiety and stress in the event of personal financial difficulty in the loss of your income, through accident, sickness or loss of job through involuntary redundancy...the government is keen to encourage Mortgage Payment Cover uptake as often social benefits are limited….if you lost your income for the next 12 months to 24 months how would you meet your mortgage payments, and other key house-hold costs ?
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