Q:1 )What is the difference between mortgage protection insurance and income protection? 2) Will the payments include monthly bills as well as mortgage? 3) How long does it take to set up the policy? 4) Can I get it effective from the day of completion? 5) I would like to know if there are any other formalities
A: Mortgage payment protection insurance is used to cover a mortgage payment, income protection insurance is not tied to a mortgage or borrowing and is linked to your income only. If you apply online it usually takes 7 – 10 days for the underwriters to process your application and for you to receive your policy documents. If you ask for the policy to start today and the underwriters accept your application they will back date the policy start date to that requested. Under the mortgage protection policy you can cover your monthly mortgage payments, you can include the cost of your mortgage related insurances, such as life insurance critical illness and building and contents insurance, you can then insure for an additional 25%.