GDP growth rate slowed down sharply in Q2, after showing strong growth in Q1. As per Office of National Statistics GDP growth rate in Q2 was just 0.3% versus Q1 GDP growth of 0.7%. Though the labour market remains strong, slowdown in manufacturing can be a cause of concern in the quarters to come. The Purchasing Manager’s Index (PMI), barometer of manufacturing activity declined to 46.2 in September from 47.1 in August. The housing market remained stable, even as house prices crept up by 0.5%, despite relatively high interest rates. Unfortunately, low awareness or interest in mortgage payment protection insurance make home-owners at risk if the economy slows down and unemployment rises in the future.
Mortgage Payment Protection Insurance
Mortgage Payment Protection Insurance is a short term income protection insurance plan, which covers the mortgage payments of the homeowner, if they are unable to work due to accident, sickness or unemployment. Homeowners should understand that while they may be able to cut discretionary expenses during the period when they are not working, they cannot wish away or even reduce their mortgage payments. These payments have to be made on time or homeowners risk losing their homes.
Mortgage Payment Protection Insurance makes monthly payments, which enables the policyholders to cover their monthly mortgage commitments during the period when the policyholders do not have income due to accident, sickness or unemployment. With mortgage payments taken care of, the policyholder can focus on discretionary expenses, protecting their savings or investments, search for suitable employment opportunities or convalescence depending on the situation.
Realm Protection Mortgage Payment Protection Insurance
The Realm Protection Mortgage Payment Protection Insurance is designed specifically to cover the monthly mortgage repayments for up to 12 months per claim if the policyholder is prevented from earning due to an accident, sickness or involuntary unemployment. The policy can cover additional expenses (over and above mortgage payments). In other words, the mortgage payment protection insurance can provide more protection that just mortgage payments; you can cover some regular expenses also like utility bills etc. The maximum monthly benefit is £2,500. The policy has a 120 day exclusion period for unemployment cover i.e. if the policyholder involuntarily loses his / her employment within 120 days of policy purchase, then he / she will not be eligible to make a claim.
Final word
Mortgage Payment Protection Insurance is usually quite affordable for homeowners. The cost of mortgage payment protection insurance is lower than typical income protection insurance products. With a modest monthly premium, you can protect your home and provide a sense of security to your family or loved ones even in adverse circumstances, while focusing on your most important priorities.