Mortgage Repayment Protection Insurance
t Protection Insurance is usually taken out at
the time you apply for a mortgage but can be arranged with some
insurance companies after the mortgage has been completed.
You should seek suitable advice about arranging such cover from
a suitably authorised person.
Mortgage Repayment Protection Insurance provides cover in the
event of you being unable to work as a result of an accident or
illness or being made involuntary unemployed.
The maximum amount of cover that you can arrange is based on
the amount of the monthly mortgage repayment plus you can also
cover such things as the monthly buildings and contents
insurance premium and mortgage related life insurance monthly
premiums such as an endowment policy or a decreasing term
assurance policy.
Mortgage Repayment Protection Insurance usually pays out for up
to 12 months.
You do not usually have to have a medical to arrange mortgage
repayment protection insurance.
In the UK cover can usually be taken out as long as you work
for at least 16 hours per week and are aged between 18 and 64.
The cover ceases once the mortgage is repaid or you reach age
65 or you retire or should you stop maintaining the monthly
premiums or indeed should you just decide to cancel the policy.
Mortgage Repayment Protection Insurance can be taken out either
just to cover one applicant or both applicants. If both
applicants are covered and say they are both on the same income
then the policy will pay out half of the amount of the monthly
cover in respect of the applicant who is ill.
In the UK the cost of Mortgage Repayment Protection Insurance
is based on the amount of the monthly cover you have arranged
and will vary between the various companies who offer such
cover.
There are some exclusions with this type of policy which you
should establish.
About The Author: Alan Hope runs a lifestyle management and
concierge service business for both UK and Overseas clients.
Visit his website at
http://www.insuranceplan.org.uk/decreasing_term_mortgage_life_insurance.htm
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