Long Term Income Protection
Long term policies are less common and will usually be considerably more expensive; however customer can expect far more comprehensive financial cover for an extended period of time. This type of policy is usually intended to cover customers who become afflicted with a serious long term illness.
Although payouts for mortgage protection insurance are usually guaranteed in most circumstances, the majority of insurers will often have several exclusion clauses that will be included as part of an agreement. The following are some examples:
- Voluntary unemployment or redundancy
- Unemployment due a breach of contract
- Self inflicted injuries, regardless of their severity will usually render a policy invalid
When 33 year old copy editor Rosa Malone suffered a serious neck injury, she required significant surgery and was unable to work for several months while she recovered.
Luckily however, her mortgage protection insurance covered the cost of her mortgage while she underwent extensive rehabilitation and treatment.
"Although my health insurance paid for the cost of my rehabilitation, my mortgage protection cover gave me the peace of mind to concentrate on my recovery while I was unable to work".