Tuesday, December 20, 2011

Mortgage Protection Insurance – Your Lifeline in Times of Crisis

In the current economic climate, so many people are feeling the pinch - some more so than others. With so many businesses and organizations looking for ways to cut costs, it seems that many are resorting to layoffs and redundancies. This means that jobs that seemed safe just a few years ago can no longer be considered so. Whether you think your job is safe or not, if you own your own home, then mortgage protection insurance is vital to protect your assets and the roof over your head, especially in times of uncertainty.

Many people in the UK who work as civil servants or public servants may have entered this field thinking that they have a job for life. While this may have traditionally been the case, the government and local authorities are using cutbacks as a way of saving taxpayers' money and we've seen a raft of closures and redundancies over the past couple of years. This trend is set to continue as the economic crisis shows little sign of improving or even slowing down.

Many people have had to accept pay freezes over the past couple of years, making it more and more difficult to make ends meet. Even though salaries may stay the same, the cost of living is on the rise. Grocery bills are more expensive as food prices go up and energy bills seem to rise by a hefty percentage on a regular basis. This means that our spending power is reduced and consumers are always on the lookout for ways of saving on regular monthly outgoings.

One place not to try to make a saving is on various financial products such as mortgage payment protection. At the moment it's more important than ever to have an adequate policy to protect your home should you be made redundant.

There are many financial providers that offer policies that will cover your mortgage payments should you lose your income and it's essential to shop around and make sure that you choose a policy that is right for you. Most of these policies will pay out after 30 days of unemployment, but others will only pay out after 90 or 180 days. If you don't have enough in your savings to cover your mortgage payments for 3 or 6 months, make sure that the policy you buy pays out quickly.

Your home is your biggest asset and it's vital to protect it from the effects of the economic crisis. Some policies will not only provide a monthly sum that should cover your mortgage repayments, but also offer an additional sum that you may use towards other household expenses. If you are made redundant and have no income for a period of time, an adequate policy will give you the breathing space you need to concentrate on finding a new job. A good mortgage payment protection plan will make all the difference not only if you are made redundant but under other adverse circumstances. Adequate mortgage protection insurance will also protect you if you are unable to work due to sickness, accident or injury. Making sure you have the right sort of policy is essential to protect your home and your lifestyle while you weather the financial storms.

By: Albert Camus
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