Why Pay Extra For Mortgage Insurance Protection?

Do You Need or Want It? Read on to learn more

17:19 19 March 2013

Mortgage Insurance Protection is a program that is offered to borrowers of a home loan.  It makes payments for you if you get hurt or lose your employment for a period of time.

 

This type of program is not mandatory however; some loan companies may add it to their agreement with you. You should probably consider this if you have a hard time finding employment in your area in case of getting laid off.

 

You should also consider it if your finances are strained due to the amount of your mortgage payment and other bills.

 

These programs are always means tested. This means that you will need to prove your income level and always be expected to use your money first.

 

This is part of the program that many people do not agree with or do not want to do. 

 

• There are several downfalls several of them being waiting periods of one sort or the other.  For example after completing the agreement if you lose your job within sixty days the company will not give you any assistance.

 

• The other waiting period is that you will have to wait very close to nine months before you see any payment from the company.  This is bad if the program is not done by the same company. Even if it is by the same company they may require you to pay for the whole nine months until the program kicks in and gives you some relief.

It works similar to Job Seeker Allowance in the fact if you resigned, got fired for misconduct, or your job was terminated involuntarily.  You also will have to be making a claim or already receiving job seeker allowance to get this benefit many times from the company.

 

So in conclusion you will have to be prepared to wait a long time for any benefits to be given to you. You will have to make sure you legitimately lost your position and be seeking or receiving job seeker allowance.