Q: My husband is worried about his job security so wishes to take out mortgage protection insurance. We are concerned that if we take it out now on our current mortgage we will not be covered for the free period (3 months) but we are in the process of moving house (should complete beg Nov) so should we wait until then and be covered from day 1 with a new mortgage. This however proves problematic if he in fact loses his job in the next month. We would not have any cover at all. What do you suggest?
A: If you husband was to loose his job in the next month there would be nothing we could offer that would cover him.
If he takes a mortgage payment protection insurance policy now it will be subject to an initial exclusion period.
If he takes it at the start of his new mortgage in November then he will get immediate cover from the start date of your mortgage. However, he can not know of any impending unemployment when the policy is taken out as the insurer will not pay.
I hope that this has clarified your queries.