can I protect my mortgage for 2 years?

Short-Term Mortgage Protection Insurance

• Accident, Sickness, and Unemployment (ASU) Cover: Many mortgage protection insurance policies, particularly those offering Accident, Sickness, and Unemployment (ASU) cover, are designed to provide protection for a set period, typically up to 12 or 24 months. This means that if you become unable to work due to illness, injury, or redundancy, the policy will pay out a monthly benefit that covers your mortgage payments for the duration of the policy term.
• Policy Term: You can select a policy with a 2-year term if you want coverage specifically for that period. This could be useful if you are concerned about job security or other factors over the next couple of years.
• Renewal Options: At the end of the 2-year period, you may have the option to renew the policy, depending on the terms of the insurance provider. However, renewal is not always guaranteed and may be subject to new underwriting, particularly if your circumstances have changed.

Fixed-Term Income Protection Insurance

• Short-Term Income Protection: Some income protection policies are designed to cover income for a limited period, such as 12 or 24 months. While these policies are not specifically tied to your mortgage, the payout can be used to cover mortgage payments and other expenses.
• Flexibility: This type of policy might offer more flexibility than a traditional mortgage protection policy, as it can cover a broader range of expenses, not just your mortgage.

Choosing the Right Policy

• Policy Selection: When choosing a policy, ensure it clearly states the coverage duration and conditions. Look for policies that specify a 24-month benefit period if you want protection for exactly 2 years.
• Waiting Periods: Be aware of waiting periods (also known as deferment periods), which is the time you must wait after becoming unable to work before you start receiving benefits. Common waiting periods are 30, 60, or 90 days, which will affect when you start receiving payments.

Considerations

• Cost: Short-term protection policies typically have lower premiums than long-term ones, but the overall cost will depend on factors such as your age, health, occupation, and the level of cover you choose.
• Exclusions: Carefully read the policy exclusions, especially regarding redundancy cover, as not all job loss scenarios may be covered. For example, voluntary redundancy or dismissal due to misconduct is generally not covered.

Conclusion