A mortgage protection policy could protect your monthly repayments
- 22ND DECEMBER 2007
Despite the bad publicity surrounding payment protection insurance (PPI) products, a mortgage protection policy could protect your monthly mortgage repayments and shouldn’t be viewed with the same concern as the loan and income payment protection insurance.
A mortgage protection policy is taken out by those who fear they might sometime in the future find themselves losing their income after suffering an accident, illness or unemployment. The State cannot be relied upon to give you an income to carry on repaying your mortgage each month which means that homeowners are leaving themselves wide open to having their home repossessed.
While a mortgage protection policy can give you a tax free income it is not a suitable product for all individuals because there are exclusions. Typical exclusions include retirement, if you are self-employed, working only part time or if you have an ongoing pre-existing condition.
A policy taken out alongside the mortgage with the high street lender can be very costly and by going with a standalone provider such as British Insurance you can save up to 40% on what could be a lifeline. Having access to the key facts is essential if you want to ensure that you would benefit from a policy and British Insurance do make sure that it is available in plain English which makes understanding the cover much easier.
It is the lack of knowledge which has caused the majority of problems with all payment protection insurance; firms have been fined for not making the consumer aware of the exclusions at the time of selling. While there has been and still are problems in the sector, when sold correctly a mortgage protection policy can protect your mortgage repayments and therefore the roof over your head.
