With the amount of individuals coming out of work through no fault of their own and having to have a month or longer from work without an income some thought should be given to mortgage payment protection insurance (MPPI). If you find you cannot continue servicing your mortgage repayments if you become unemployed, then you are at risk of losing the roof over your head. Cheap mortgage insurance could ease the stress and worry of this by giving you a tax free income.
Cover would safeguard against being unable to work due to an accident, an illness or if you were to become unemployed through no fault of your own. With no one's job being safe, redundancy can become a reality and a policy can insure against this too. The policy would depend on the provider; some state that you have to be too ill to work for 30 consecutive days, while with others it can be as long as 90 days. However it could last once it has started supplying you with an income for between 12 and 24 months.
You have to read the wording of the terms and conditions very carefully because not only will it tell you how long cover lasts but also lists the exclusions. Again these can vary from provider to provider but there are some which are frequent in all payment protection policies. Suffering an illness which is considered to be ongoing, being retired self-employed or only working on a part time basis can all mean cover would not be fitting.
Mortgage cover can provide you with both the security of a replacement income and leaves you to concentrate on getting another job or getting better instead of worrying about financial matters. A policy would normally give enough money to cover your mortgage outgoings and essentials such as related insurance. The amount you are asked to pay will depend on your age when getting the quote and how much your mortgage repayments are each month.
You can be offered mortgage insurance when applying for your mortgage at the time of borrowing but this is usually the dearest way of taking out protection. It is important to realise that you do have the choice of taking a policy independently and you should not be turned down for borrowing by wanting to buy from a standalone provider.
It is estimated that high street lenders are bringing in around £4 billion just in profits from selling expensive cover. The high price of insurance is just one of the things that have given payment protection products a bad name. Low cost mortgage insurance is usually not offered alongside a mortgage and very often the information given relating to the policy benefits and exclusions is very sparse.
For the vital information needed and cheap mortgage insurance stick with an independent provider. An ethical specialist can save you around 40% while backing up the policy with experience. Learning as much as you can about mortgage cover before taking it out is essential to guarantee that you get quality cover that can be relied upon. An independent ethical provider will make sure that you understand the terms and conditions and should offer free honest advice.
