A mortgage protection plan could be your lifeline
- 18TH OCTOBER 2007
A mortgage protection plan could be your lifeline if you were to find yourself out of work after suffering from an accident, becoming long term sick or if you were to be made unemployed by such as redundancy. For a premium you would receive a tax free income so that your mortgage repayments were covered and you wouldn’t have to worry about where to find the money.
The premiums are determined by the amount of mortgage that you wish to insure and your age at the time of taking out the policy but it can vary greatly depending on where you get your quotes from. You also have to understand that there are exclusions in a policy that could stop you from claiming and these can be found in the small print of the policy and must be understood. If you choose to buy your mortgage protection plan from a standalone provider such as British Insurance who is a payment protection insurance specialist, then they will make sure that you are given the essential information.
Typical reasons which can stop a mortgage protection plan being suitable are if you are only in part time work, suffer from a pre-existing medical condition, are retired or self-employed. Of course there are others and this is why you have to check the key facts and exclusions in any policy you are interested in purchasing before signing on the bottom line. Simon Burgess who is Managing Director of British Insurance warns the consumer to shop around with specialists and to get several quotes before making the decision and buying a policy. Certainly, quotes can vary greatly and British Insurance can save you up to 40% on a mortgage protection plan.
A mortgage protection plan can be your lifeline providing that you understand the product and have ensured that a policy is suitable for your needs before you buy.
