Protectioning your Mortgage Monday, 16th March 2009

You may think doing without such mortgage payment protection will save you money each month, but if things do suddenly take a turn for the worse, you will soon realise what a false economy this is as you struggle to make ends meet.

It is understandable that people are tightening their belts and trying to save money wherever they can, but it is important they do not make cuts they will later regret.

With mortgage payment protection insurance you make sure that you are insuring homeloans. And it covers: accident, sickness and unemployment.

It is easy to see the benefits of protecting yourself against possible redundancy and although it is what a lot of people are worrying about at the moment, people will still fall sick or have accidents that stop them from working and having the right insurance in place will help them deal with the problems that this could cause.

It is best to go to a broker who can look at the whole market place for the most suitable and cost-effective option rather than plumping for the first thing you see. In the case of MPPI, your mortgage lender is likely to offer you its own cover when you arrange your homeloan, but don’t feel like you have to take out its policy. It may seem like one less thing to sort out having been through the arduous process that a mortgage application can be, but you can often save money by shopping around.

There are other things to think about as a homeowner if you want to be covered for all eventualities. For instance – buildings insurance – isn’t optional as no lender will give you a mortgage without it.

And you also need to think about protecting your possessions, particularly if you have valuable electrical equipment or expensive jewellery.

Finally, but by no means least, is – life insurance. You may think it morbid to take out such a policy, but it makes sense to ensure your mortgage can be paid off in the event of your death, particularly if you have a family.