A lack of knowledge when it comes to the options for taking out mortgage cover leads to many homeowners paying over the odds for their protection. This is due to the fact that many do not realise they have the option of shopping around for their cover and they instead take it alongside the mortgage at the time of borrowing. If you want cheap mortgage protection then the only way to ensure you get quotes for the lowest premiums is to go to a standalone provider.
A standalone provider is someone who specialises in selling payment protection insurance. Cheap mortgage insurance is one such product that can protect your monthly mortgage repayments if you should become unable to work. If you were to suffer an accident, illness or should be made unemployed through a reason not of your own fault you would lose your income. You would then have to find your mortgage outgoings each month to ensure that your home would not be at risk of repossession.
Relying on the State should not be your only plan. While the State offers limited help to those who are collecting income support you do have to wait several months before receiving assistance and you might not get the full amount of your repayments. A better option could be mortgage payment protection cover; however you do have to meet certain requirements. The requirements for mortgage cover will be laid out in the terms and conditions and providing you read these you will know whether or not a policy would be suitable.
There are exclusions in all policies and it is these that you have to check against your circumstances. For instance being in self-employment, suffering an ongoing illness, being retired or working part time would probably make you ineligible. It is still worthwhile considering a policy but you do have to read it over thoroughly before purchasing.
Cheap mortgage protection insurance taken out with an independent provider would give you peace of mind and allow you to recover or find other employment without the worry that you could get behind on your mortgage. A policy would begin to give you a tax free income to cover your repayments from between day 31 and 90. It would then last for anywhere between 12 and 24 months depending on the provider. Providers can also add in different exclusions than the ones which are generally associated with payment protection so always double check.
Cheap mortgage insurance has been hard to find in the past but hopefully the product will be made more transparent soon. In March 2008 comparison tables will be introduced. These will show the consumer how much cover would cost, tell them about the terms and conditions and allow them to choose the right product for their needs. Mortgage insurance is excellent protection for those who have a mortgage, but the range of products also includes loan and income protection which are very closely related. For the time being the only way to get all the information needed is to go with a specialist in payment protection and make good use of the free advice given.
