There are a lot of reasons as to why you should insure your home with a mortgage protection cover. Yes, many critics of insurance policies will tell you that it is just an additional and unnecessary expense on your part to avail of this insurance policy. But actually, smarter people know better than that! Insurance gives you support and protection for the things that are of absolute importance in your life like your house!
Owning a house is a big step and a great investment. Every working individual dreams of having his or her own house someday. And when you work hard, you will have the means to pay for the house because you will have a steady house.
Sadly, in this world, nothing lasts forever. You can find yourself one day without a job and in debt without any means to pay off your house mortgage. With job redundancies and cut backs happening here and there, you, becoming unemployed, is not a far off reality. What then will you do? Nobody wants to end up becoming bankrupt and nobody wants to end up suffering because you don’t have any means of income.
Let’s face it. Even when you get separation pay from your employer when you are let go from your work for reasons beyond your control and even if you have some stashed savings in the bank for rainy days like this, the reality of it is without a new job to become your new source of income, your savings and this separation pay will only last you for so long. But with a mortgage protection insurance policy, this scenario will not be happening to you.
With mortgage protection cover, your insurance provider will be there to support you financially speaking when you lose your job. It will pay for your monthly house mortgage payment so you don’t have to worry about being at risk of losing your home.
Mortgage payment protection insurance or MMPI will become active as soon as you start paying off your insurance’s monthly premium but filing for claim is not as easy. There are certain conditions you need to meet first before your insurance provider approves your file for insurance claim.
One of these conditions is to meet the laundering period which is normally a month after you lose your work. The other conditions you need to meet are the following:
1. You did not voluntarily resign from your work.
2. You did not know beforehand that you will become unemployed soon prior to availing of a mortgage payment protection insurance
3. Reason for job loss is something that is beyond your control
4. Your employer has verified that you indeed have lost your work for reasons such as job redundancy or cutbacks.
When you do pass these conditions, your claim will be approved. Take note however that the money is not going to your pocket rather it will go directly to your mortgage payments. Also take note that there is a certain period of time that your insurance can support you. This is normally twelve months and after that it will stop assuming you are already able to find a new job to support yourself and your family.