Author: Chris Channing
You may have a mortgage on your home that you took out to help pay for some service or improvements on something. Taking on a mortgage can certainly put you into a deep hole of debt if you don\'t play your cards right. There is even the possibility that you will lose your home and all of the things you own if you are unable to make repayment on time, especially if you don\'t have an insurance plan like mortgage payment protection.
If you become unemployed, mortgage payment protection is a special type of insurance that helps a person to pay a mortgage. Even if you lose your job because of accidents, sickness or plain being laid off from a good job because of downsizing, mortgage payment protection will help to cover the costs of your mortgage while you heal or find a new job. You will be able to pay off your monthly obligation to your mortgage with the help of mortgage payment protection.
They cover the costs of the mortgage monthly payments to your bank or lender while you look for alternate work. This can be a very big help to those who have suffered a horrible accident and cannot find work while they heal from the loss of a limb or some other type of damage.
You need to be around age 18 through 65 years or older as well as being employed for no less than 16 hours a week to be eligible for payment protection. To get these benefits under self employment or long contracts, you need to have been under this job for a very long period of time.
The length of the coverage is usually for 12 months from the unemployment date. In some special cases and through some companies, a 24 month period of payment protection is offered. This is usually long enough for a client to get back on track with their health or to find a new job that is adequate enough to cover the costs of the mortgage repayment terms.
Premiums are usually a flat rate regardless of gender, age or occupation. Depending on the type of benefits you choose the premiums may be different at a percentage. There are some age dependant variations of this protection that benefit younger protected individuals.
Being without employment seems like a dead end when you have a mortgage. As long as you have mortgage payment protection, you will be fine and not have to worry about repaying the loan for one to two months.