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Bruce Said:

Do you have a Will, Life Insurance and Insurance to cover your mortgage in case the worst happens?

We Answered:

I have all of those and even funeral instructions and I'm only 39.

Marcus Said:

What type of insurance do I need to get to cover me financially if I am unable to work / get to work?

We Answered:

Sounds like you are after income protection policy. There are price comparison sites to compare policies (be careful about small print). The Post Office have a policy called Lifestyle Protection (see their website). You say how much cocer you require and cost is based on that

Perry Said:

Homeowner's Insurance cancelled Does my Mortgage cover me ?

We Answered:

No.

That forced placement coverage that your mortgage company will charge to you (which, btw, costs about 10X what regular homeowners is) will NEVER cover you. It won't pay you, it won't cover your stuff, it won't even pay to fix your house if there's a fire. It only EVER pays the mortgage company, and only up to the mortgage amount. And mortgage companies aren't going to use that money, to fix your house.

What you do, is pay in full for one year. If you don't have it this week, you'll have to wait until next week. If you go 30 days without coverage, though, you'll be considered 'high risk', and the cost will go up.

Joanne Said:

Is there insurance that covers your mortgage if you get laid off?

We Answered:

No such private insurance in the U.S. Only unemployment compensation.

Steven Said:

What kind of mortgage insurance covers employment loss?

We Answered:

You can get standalone unemployment insurance, or included in Accident Sickness and Unemployment (ASU) policies, also known as Mortgage Payment Protection Insurance (MPPI).

MPPI has had a bad press because of the way it was sold by some. i.e. quite often the MPPI was added to loans without telling clients fully, or at all. In some cases the clients were actually ineligible for the cover because, for example, they were unemployed or self-employed.

However, just because it was miss-sold by some, doesn't mean that it was miss-sold by all and is therefore a bad product. That's just not true.

Personally, I prefer Income Protection instead of Accident & Sickness cover because it's more comprehensive, pays out for longer and is directly related to salary or income. ASU only pays out for 12-24 months and for a limited amount of money, and only designed to cover the liability, leaving little or nothing to live-off.

However, there is no other insurance product (that I know of) to insure against unemployment. It is possible to take out an ASU policy for just the unemployment cover. Have a look at the sites below, or Google search for redundancy insurance.

Best wishes.