Why You Need Mortgage Repayment Protection Insurance

By: Robert McKnight

A house is the largest purchase that most people make during their lifetime. Not only does it represent a sizable investment, but it is where you live. Your memories are kept there, along with your possessions. Learn how to protect your ability to pay your mortgage even if you should become unemployed.

Mortgage Repayment Protection Insurance Pays Your Mortgage When You Can't

If you were unable to work due to illness or disability, would you be able to make your mortgage payments? Many people just don't have the financial means to keep up with their financial obligations if they don't work. While you may qualify for unemployment benefits, these do not pay enough for you to keep up with all of your financial obligations.

When you consider what is at stake if you can't make your mortgage payments, buying mortgage repayment protection insurance coverage may make good financial sense. If your home was repossessed, you would need to find another place to live, in addition to dealing with the fact that you are between jobs.

Mortgage Repayment Protection Insurance: Questions to Ask Before Buying

Before you decide to buy mortgage repayment insurance, make sure you take the time to investigate your options fully before choosing a plan. You will want to compare rates and find out what level of protection you are getting for the premiums you are paying. It's a good idea to ask whether there is a waiting period before you can collect benefits under the policy. If you choose a plan with no waiting period, you will pay more in premiums but if you need to make a claim, you will start receiving benefits sooner.

Find out whether the plan you are considering pays out for a certain number of weeks only if you are laid off from your job. You may only be able to collect benefits for up to 12 months. If you become sick or are off work due to an injury, the maximum number of weeks you could collect benefits may change.

Your mortgage repayment insurance may also include a life insurance portion as well. If the first named person on the policy passes away, your mortgage may be paid off in full. This means one less bill to be concerned with when the worst happens, and is an attractive option for a number of people. Other life insurance coverage can be used to replace that person's income or to pay off other debt. Many people are caught in what is known as the "Sandwich" generation. They are caring for their children as well as aging parents. Some mortgage repayment protection insurance plans will pay out benefits if you need to take time away from work to become a full-time caregiver.

When Mortgage Repayment Protection Insurance is the Right Thing to Do

The main reason why you need mortgage repayment protection insurance is that it's part of an overall financial plan. You want to anticipate future events that may affect you and your family's financial future. You have worked hard to be able to buy a house and you want to make sure that you will be able to keep it if your earnings are interrupted. Take steps to insure that you can make your mortgage payments even if you should become unemployed. Get started finding mortgage repayment protection insurance today!

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