More Detail Here: Compare Nsw Green Slip Insurance Submitted by: Dennis Haggerty Mortgage protection is among the fastest growing areas in the UK insurance industry. This article takes a look at why more and more
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Submitted by: Dennis Haggerty
Mortgage protection is among the fastest growing areas in the UK insurance industry. This article takes a look at why more and more Britons are taking out these policies, and what makes them so popular in the current economic climate.
One of the big things that makes the UK different from mainland Europe is the relatively high number of homeowners. Whereas in many European countries, people are comfortable renting for long periods without ever feeling the need to buy, Britons tend to be keener to put down roots and settle in a place they can call home.
Both of these approaches have their advantages and disadvantages. One of the biggest issues that come with buying a house is the enormous commitment it requires. Once a mortgage is agreed, the homeowner is compelled to pay a fixed amount each month, or risk losing the house. They do not have the luxury afforded to renters of being able to move if their financial circumstances should change, so it can represent a big risk to take on.
So what options are there for people who want to buy themselves a home, but are worried by the possibility of an unexpected financial disaster leaving them unable to pay for it? One solution that is becoming increasingly popular is mortgage payment protection insurance (MPP).
MPP is an insurance policy which guarantees payment of your mortgage in the event that you are no longer able to pay it yourself for whatever reason. So if you are unexpectedly made redundant from your job, the insurance will take over and ensure the monthly payments are met until you become financially self-sufficient again.
Mortgage protection will also cover you if you suffer an accident or illness that renders you incapable of working, but it is normally the fear of redundancy that is the one big motivation that spurs people to take out a policy. In the current economic situation, with low demand across all sectors and companies going out of business every week, worries about job losses are especially high, and this has caused the unemployment insurance market to grow exponentially in recent years.
An average MPP policy holder tends to be on a higher than average salary, married, aged between 30 and 55, and acting as the main breadwinner for a family with children. It works on the basis that the policy holder pays in a certain amount every month (determined by the level of cover they want), and with that they buy a guarantee that the insurer has to cover the mortgage if the policy holder is temporarily unable to.
Insurance takes away a lot of the stress associated with being out of work, because the insured party does not need to worry about rushing to find a job or recovering from their medical condition right away, but instead can take their time and go back to work only when they are ready.
It seems unlikely that the UK will become a society that favours long-term renting any time in the near future. In the absence of a European style renter culture, home ownership will continue to be the norm in Britain, and so mortgage protection insurance will always have an important role to play for homeowners seeking to minimise the huge financial risk of buying a home.
About the Author: iProtect Insurance is a leading insurer specialising in competitively priced unemployment cover and mortgage payment protection insurance.
iprotectinsurance.co.uk/products/mortgage-payment-protection/
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