An article examining the purpose and importance of mortgage payment protection and the role a broker plays in securing the right cover.
When you’re buying a home, whether as a first-time buyer or moving for the hundredth time, it can seem that you get buried under a mountain of paperwork. Mortgage protection insurance can therefore often seem like an extra hassle that can be put off for another time. When you are dealing with solicitors, estate agents, surveyors, building societies and removal companies, do you really need to add another task into the equation?
Well, the answer is most emphatically, yes you do. When you take out a mortgage, you’re borrowing a huge sum of money, which is usually paid back over a long period of time. Circumstances change, things happen, which are out of your control and mortgage payment protection is there to cushion you against any unexpected blows. You take out car insurance, buildings and contents insurance, holiday insurance… so why are so many of us reticent to insure against probably the biggest debt we’ll ever have?
Expect the unexpected
Of course, we’d all love to have a job for life, never get sick and never need to take time off except to enjoy our holidays. But unfortunately, life and the current worldwide economic climate sometimes have other plans. Mortgage payment protection is there to help you meet your monthly repayments if you need time out from work due to accidents or sickness, or if for whatever reason you become unemployed.
We’ve all heard of payment protection insurance (PPI), as it’s had such bad press of late. Well, mortgage payment protection insurance (MPPI) is nothing to do with this and confusion surrounding the two has in some cases led to people not taking out the essential mortgage protection they need. Effectively, MPPI is there to support you throughout unexpected, uncontrollable circumstances that may mean you can’t pay your mortgage. Think how important your home is to you and your family; to most of us, it’s our refuge, our place to relax and maybe even our place of work and surely that’s worth protecting?
Finding the right cover
Like all insurance, the amount of MPPI you will require will vary depending on your personal circumstances, as well as the amount you’ve borrowed on your mortgage. A broker can work with you to find the best cover. Perhaps you’re a first-time buyer purchasing a place of your own or maybe you’re a married couple moving into your next home to start a family. You may be an older couple looking to downsize your property now your children have left home. Your broker can look at all your options and suggest the best type of insurance to meet your needs.
So next time you get home after a long day’s work, take a look around and ask yourself… isn’t this worth protecting?