The benefits of loan and mortgage protection insurance
Wednesday, 24 April 2019
Take the worry out of repayments
For most of us, the monthly mortgage repayment is our biggest regular expense. In an ideal world, these payments are met without stress and we even get ahead where possible. But sometimes, life has a different plan. Unforeseen circumstances, such as a job loss, disability or serious illness can make covering loan repayments a significant challenge.
Whilst we don’t have a crystal ball to look into and advise when you might feel the most financial and emotional stress, what we can tell you is that it pays to be prepared and protected.
Loan and mortgage protection insurance is one of the best ways to safeguard the family home should the unthinkable happen and you can’t make home loan repayments. It works by providing financial support when you need it which prevents you from defaulting, giving you time to get back on your feet.
Of course the type of protection varies from one lender to another and depends on your level of cover as well as reasons for claiming. Your policy, for example, could help cover ongoing repayments or pay out a lump sum of outstanding repayments. Even if you don’t have to make a claim, loan and mortgage protection provides peace-of-mind that your major financial commitment will be met.
Some questions worth asking yourself before signing up to loan and mortgage protection insurance include:
For most of us, the monthly mortgage repayment is our biggest regular expense. In an ideal world, these payments are met without stress and we even get ahead where possible. But sometimes, life has a different plan. Unforeseen circumstances, such as a job loss, disability or serious illness can make covering loan repayments a significant challenge.
Whilst we don’t have a crystal ball to look into and advise when you might feel the most financial and emotional stress, what we can tell you is that it pays to be prepared and protected.
Loan and mortgage protection insurance is one of the best ways to safeguard the family home should the unthinkable happen and you can’t make home loan repayments. It works by providing financial support when you need it which prevents you from defaulting, giving you time to get back on your feet.
Of course the type of protection varies from one lender to another and depends on your level of cover as well as reasons for claiming. Your policy, for example, could help cover ongoing repayments or pay out a lump sum of outstanding repayments. Even if you don’t have to make a claim, loan and mortgage protection provides peace-of-mind that your major financial commitment will be met.
Some questions worth asking yourself before signing up to loan and mortgage protection insurance include:
- Is your household reliant on a single income?
- If you or your partner lost your job tomorrow, how long would you be able to cover the mortgage repayments?
- If you or your partner were unable to work for months or even years due to injury or illness, would your household be able to manage financially?
- What would happen if your partner died? Can you pay the mortgage on your own?
- If any of the above happened, would your family need to sell assets or use your savings to pay the mortgage?
