Is mortgage protection the right choice for you?
With current market conditions and job insecurity, mortgage protection is getting increasingly popular these days. Mortgage protection is a form of insurance that goes into effect when you do not generate a regular income during a certain period. It allows you to make the mortgage payments during tough times. Getting injured or losing a job can happen to anyone. Mortgage protection ensures you can pay all the bills when things go bad. Because of the added demand for mortgage protection, there are many offers on the market right now. Doing your research is important in order to make the best decision.
Many times, the lender that helps you get the mortgage will tell you to get mortgage protection with your mortgage. The mortgage protection he is offering might not be the best option for your situation however. You have to make sure you're not paying too much money for mortgage protection. If you think you're paying too much right now, it's good to know that these days it's very easy to switch from one mortgage protection provider to another.
Mortgage protection provides an extra revenue stream for a lender. If you know this, it's easy to see why many lenders automatically attach mortgage protection to a mortgage. Many times however, other insurance providers can provide you with mortgage protection in a more cost efficient manner. Sometimes, a lender will try to tell you that it is mandatory to get mortgage protection with your mortgage. Don't buy this advice, because this is not mandatory.
Mortgage protection is a big plus when you are unable to work or generate income otherwise. It ensures that you will be able to pay your mortgage payments for a certain period, most of the times between 12 - 24 months. The period is dependent on the type of mortgage protection that you have chosen. It is a big relief to be able to pay the mortgage bills When you suddenly lose your job or fall off some steps and get injured.
When purchasing mortgage protection, be sure to consider every available option for your situation. Mortgage protection is a good product, but you have to be careful where you get it. Because of the fact that mortgage protection represents a possible extra income stream for lenders, the advice they give you might not always be as unbiased as you think.
Many times, the lender that helps you get the mortgage will tell you to get mortgage protection with your mortgage. The mortgage protection he is offering might not be the best option for your situation however. You have to make sure you're not paying too much money for mortgage protection. If you think you're paying too much right now, it's good to know that these days it's very easy to switch from one mortgage protection provider to another.
Mortgage protection provides an extra revenue stream for a lender. If you know this, it's easy to see why many lenders automatically attach mortgage protection to a mortgage. Many times however, other insurance providers can provide you with mortgage protection in a more cost efficient manner. Sometimes, a lender will try to tell you that it is mandatory to get mortgage protection with your mortgage. Don't buy this advice, because this is not mandatory.
Mortgage protection is a big plus when you are unable to work or generate income otherwise. It ensures that you will be able to pay your mortgage payments for a certain period, most of the times between 12 - 24 months. The period is dependent on the type of mortgage protection that you have chosen. It is a big relief to be able to pay the mortgage bills When you suddenly lose your job or fall off some steps and get injured.
When purchasing mortgage protection, be sure to consider every available option for your situation. Mortgage protection is a good product, but you have to be careful where you get it. Because of the fact that mortgage protection represents a possible extra income stream for lenders, the advice they give you might not always be as unbiased as you think.
About the Author:
Mijnadviseur writes articles about mortgages in English and articles about hypotheek and aflossingsvrije hypotheek in Dutch.
posted by Credit Counseling at
7:17 AM
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