QUESTION 1:
I’m worried that I am about to lose my job. Can I insure my mortgage payments now so I will never lose my house?

ANSWER:
That’s a tricky one. If you have already been told you are in line for redundancy, for example, then you will have to declare that when you apply for insurance – and shouldn’t be surprised if your application is turned down! But if you’ve just got the kind of general worries we all have about the future then you shouldn’t have any problem getting a policy. Insurance companies accept the fact that we’re only likely to think about mortgage-related insurance when the economy looks set to take a dip and they are normally happy to take on new policyholders at any time. You don’t just have to apply when you take out a new mortgage, for example. The companies also have several structures in place to protect themselves from paying out too soon on new policies. You normally need to have been in continuous employment for six months before you will be offered a policy and you normally have to have been paying premiums for up to six months before you can claim. With some policies you will have to wait a further two months before your first monthly payment gets to you after a claim, though some insurers will now pay a lot sooner. The difference in terms and conditions is one big reason why it pays to shop around for the best policy rather than taking the first one you find – read on to find out more.