YOU ASK:

Can I get accident, sickness and unemployment protection with mortgage protection insurance?

WE ANSWER:

If you get the comprehensive cover for a mortgage protection insurance plan, it will invariably include these three components of protection - accident, sickness and unemployment.

This kind of insurance will prevent you from having to foreclose on your mortgage in the event that you can't continue with your mortgage payments should something bad happen to you.

The mortgage protection insurance usually pays for several months of the mortgage amortizations. The payment periods can range from 12 months to 24 months, depending on the kind of policy you buy. The payments will continue up until the maximum payment period unless your situation changes for the better.

For example, if you are disabled because of an accident, the insurance will pay for the monthly amortizations. However, if you are able to recover within 6 months and are now able to find employment, the insurance will stop the payments, since you are able to make the payments yourself.

When deciding to get this kind of insurance, you need to think about whether the benefits provided by your employer, as well as by the state (SSS and other kinds of benefits) would be enough to protect you and your family from having to foreclose in the event that you, as a bread winner is unable to keep up with the mortgage payments because of a covered hazard.

There is also a variation of this product, which is called the unemployment, accident and sickness insurance, which provides you with a portion of your monthly income. A part of this may be used to pay for the mortgage amortizations.

The advantage of this kind of product is that it may be used to pay for a variety of your family's needs. In contrast, the mortgage protection insurance payments are specifically earmarked for your mortgage payments. It will not cover household or hospital bills you may have.

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