Many mortgages are taken out on a joint basis. Often, both incomes will need to be taken into account when agreeing a home loan and so it’s important to consider what you would do if you had to rely on just one salary.
Joint mortgage repayment insurance can help provide financial support in the event that either you, your partner or friend that you share a mortgage with can’t work due to accident, sickness or redundancy.
As with other types of insurance it pays to shop around and compare joint mortgage protection insurance quotes before you buy.
What are the benefits of a joint MPPI policy?
When you take out a joint mortgage it’s likely that both incomes will contribute towards the mortgage payments. So, if the income from one partner were to fall or cease it could leave you struggling to make your repayments.
A joint mortgage protection plan is designed to pay a monthly sum to you in the event that one of you is unable to work due to an accident, sickness or redundancy.
A mortgage protection insurance joint policy will normally pay out a monthly benefit that is sufficient to fully cover your mortgage payment (athough you can set it at a lower level should you wish). In addition, you can often increase the monthly benefit to cover your other main household bills.
You should remember that a joint mortgage repayment insurance policy is a ‘first event’ policy. You can generally claim on the policy once – for example if you’re both off sick then it won’t normally pay the full monthly benefit twice. For this reason you need to make sure the policy you choose offers sufficient benefit to protect you financially against this.
What should you look for when you undertake a joint mortgage protection insurance comparison?
With hundreds of joint mortgage repayment insurance plans on the market, it’s important to compare joint mortgage protection insurance quotes before you buy.
While comparing the cost of a joint MPPI policy may be your priority, it’s important that you also take into account the quality of the cover.
For example, how much of your income will a policy let you cover? Most insurers restrict the amount of cover you can take to 50-60% of your income while others have a maximum monthly benefit of around £1,500 - £2,000. This could be a factor if your monthly mortgage payments are high.
In addition, you should establish when you can expect to receive your first payment in the event that you make a claim. This can vary from around 30 to 90 days and is important if you need a joint mortgage protection plan to pay out quickly if you make a claim.
Also, check how long will the policy continue to pay out for once you start claiming and whether there are any terms and conditions that will either affect your ability to be covered by a policy in the first place, or your ability to claim on your policy if and when you need to.
Choose the joint mortgage protection insurance policy that combines cover that's sufficient to give you peace of mind and financial protection against the unforeseen, with an affordable monthly premium.
