Most mortgage payment protection plans in the India do not offer coverage or payments of the mortgage if the policyholder should become unemployed. Since unemployment benefits are significantly lower than earned wages, they may not provide enough to make mortgage payments, and could cause one to lose his or her home.

Benefits:

• Three months free cover for all customers.
   
• Immediate unemployment cover if you transfer your current mortgage payment protection insurance policy to us.
   
• Immediate unemployment cover if you are taking out this policy because you are taking a new mortgage or remortage.
   
• 12 month benefits with the first payment after only 30 days.
   
• An optional 25% uplift to cover other monthly benefits.

Protection if one becomes unemployed is the primary reason people purchase mortgage payment protection. Costs are about .24% of the mortgage amount per month. Usually mortgage payment protection requires an unemployed beneficiary to register with an unemployment agency and prove that they are diligently seeking work. In most cases, there is a set term in which the mortgage payment protection will continue to pay the mortgage. Terms are generally either 12 or 24 months. Additional months may be purchased but will significantly raise price.

In addition to payment if one becomes unemployed, mortgage payment protection will also offer options such as payoff of the mortgage if one dies or becomes totally disabled. This may be of great help to a surviving partner, or to those who might inherit the property, as they will own the full property, not just the portion previously owned by the deceased owner.

Mortgage payment protection is frequently offered with fixed terms. One’s payments to the insurer will never go up. However, if the home value changes, and the owner decides to refinance, thus owing a larger amount, he or she may not get full coverage or repayment without changing his or her mortgage payment protection policy.