If you were in the terrible position that you became unemployed it often creates a lot of problems. The main one being in a lot of peoples circumstances the inability to be able to pay the bills. For many of us the roof over our heads is the most important thing. If this was taken away due to the payments being unable to be maintained this could cause dramatic consequences.
The government will provide some assistance if you were in this unfortunate position, however they should be by no means be relied upon.
Therefore the next available option to people out there is to try and cover your mortgage repayments with some form of insurance. The type of insurance that is out there will cover you against accident, sickness or if you were to become ill and unable to work. You can also take it to provide insurance against being made unemployed.
The normal type of insurance will cover you for 1 year if you were to be made unemployed, become sick or to suffer an accident. However there are types out there that would give 2 years of cover but these can be more expensive in some cases.
You will often find that with this type of contract there is a exclusion period built into the contract initially. This often means that no claim will be accepted on the plan if it arises through unemployment in the first 30 days of the plan. You may also find that this is over a longer period of time for some plans. In addition to this you will often find this type of plan will have an excess built into it. This excess is normally described in days, so you may find a 30 or 60 days excess built in. But after this excess period has been passed you will often find that the payment is backdated to day one. So you could find you plan is described as a 30 back to day 1 plan. This means you will have to wait 30 days to get your money, however when you do get it, it will be paid from the 1st day of claim.
You can also find that you can cover extra than your mortgage repayment, this could be for things such as bills, pensions or insurance. Once again depending on the type of plan that you take out this will be linked to the amount you can take extra.
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