A mortgage payment protection insurance policy could save the roof over your head
- 14TH OCTOBER 2007
A mortgage payment protection insurance policy (MPPI for short) could save the roof over your head by giving you a monthly income with which to repay your mortgage but you have to ensure that the product is suitable for your circumstances before you buy.
There are exclusions in a mortgage payment protection insurance policy which could mean that you would be ineligible to make a claim. Common exclusions to most mortgage protection insurance plans include being of retirement age, if you suffer from a pre-existing medical condition or if you are only in part time work. Of course there can be others and they can vary from provider to provider so you have to check the small print of a policy before buying.
A standalone and more ethical provider will give you the information and the key facts in a mortgage payment protection insurance policy before you buy and explain them in plain English avoiding the technical jargon associated with policies. One such mortgage payment protection insurance specialist is standalone provider, British Insurance. Simon Burgess from the company is for the consumers rights and warns them that if they take cover out alongside their mortgage then they will be paying up to 40% more for the cover than had then gone to British Insurance.
A mortgage payment protection insurance policy will begin to payout once you have been out of work for a pre-defined period of time which can be anything from the 31st day to the 90th day of being out of work due to suffering from sickness, an accident or if you were to be made redundant. The cover would then usually give you a tax free income so that you can carry on meeting your monthly mortgage repayments and so not get into arrears.
Some homeowners mistakenly believe that the State would step in and provide them with the money to pay the mortgage. However, while some financial assistance can be given if you qualify, the help they give can be very little and certainly not enough to give peace of mind.
A mortgage payment protection insurance policy from a standalone provider will, providing you have read the small print and know it is suitable for your circumstances, give you the security and peace of mind that your home is safe, whatever life throws at you.
