A Mortgage Protection Policy (also known as an ASU Policy) will offer you the cover and peace of mind you need should you be made redundant, become ill or have a serious accident which means you cannot work, and therefore cannot afford to pay your monthly mortgage instalments. Mortgage Protection insurance is basically a plan where the policy holder pays agreed monthly premiums and, in the event of being unable to work due to illness, injury or redundancy, the insurance company will pay out a fixed monthly income to protect the policy holder’s mortgage repayments.
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There are various levels of cover available for different periods of time to suit different situations. The terms and conditions under which you can claim differ under every policy, so it is very important to read the small print carefully.
The Benefit Period is the length of time you can claim monthly payments for, and this varies with each policy. You can choose how long you want the payments for, but the longer you wish to receive the payments, the higher your monthly premiums will be.
There is always an Initial Exclusion Period at the beginning of every Mortgage Protection contract; this means no claim can be made within an allocated time period at the start of the policy.
Alternatively, some Mortgage Protection plans do have what is called a Waiting Period, after this time the claim will then be paid in full. For example; with a 30 day waiting period, on the 31st day of unemployment, the claim will then be backdated to day 1 and paid in full.
Most Mortgage Protection insurers will usually offer an extra sum of money to pay for mortgage related bills, such as pensions and insurances, but they do have conditions as to what the money can be used for.
Let us search for your Mortgage Payment Protection insurance now and see how much you could save on your current Mortgage Protection monthly insurance premiums in just a few clicks!
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