Owning a home would be one of the top priorities and the first item on the wish list of anyone drawing a sufficient income in Ireland. Of course, they get relieved from paying a monthly rent albeit not in its entirety. Rent gets substituted with mortgage payments, the only difference in the latter being that the home would eventually be their own. This comes with the added liability of making committed monthly payments which is only possible with a constant source of income. What if one loses his job and cannot support his mortgage payments? This is when mortgage protection cover comes as a big panacea.
What is mortgage protection cover?
It is one kind of insurance that helps in protecting mortgage payments in the event of loss of job or death or some prolonged illness. In plain terms, it is a simple income protection policy that helps pay off mortgage dues even in undue situations and thereby protect an individual’s asset.
How mortgage protection cover works in Ireland?
It is one of the options provided to home buyers in Ireland while they sign off their papers for the new home. This is something for which the homeowner has to pay a minimum premium every month. However, this is not to be confused with the regular insurance for a home or the monthly premiums paid for mortgage.
Regular insurance covers the home against natural disasters or damages while mortgage protection cover is used for paying mortgage premiums when something adverse happens that hampers regular payments. With this policy, mortgage payments happen automatically, without any hassles.
Is it really required?
In a highly volatile job market, where losing a job is not uncommon, one needs to protect his earnings. Income protection provides full security for ones earnings and takes control of unpaid mortgage balances until the pastures turn green. After all, one would hate losing his home due to a temporary instability.
Just not a job, it even covers ones family in the event of death or disability. The family can evade from the perils of being homeless. At least, they will have one less thing to worry about after any such mishap; they can stay at their own home.
When no one really hesitates to buy insurance for a car or a home, why think twice about purchasing a plan that will actually protect the seed of the finance. The potential to maintain a constant income that will supplement outstanding dues in situations of dire need is of utmost importance. Income protection will be on the list of inevitable items for anyone who smartly plans their financial future.
Certain specifics about the cover:
The premium that needs to be paid will be determined by considering various factors such as age, health conditions, smoking habits and other criteria. Another option that can be considered is the joint coverage where the borrower and spouse are covered in the event of death of any one. Furthermore, if the mortgage payments are low the premiums will be low; for higher mortgage payments the premiums may be a little more though.
Where to go?
There are many companies in Ireland that can help with this; just look over the internet, there are several sources offering the complete income protection plan for a secure financial future.
