A mortgage protection policy could provide a lifeline
- 22ND SEPTEMBER 2007
If you were to come out of work and lose you income then you could be left struggling to make the monthly mortgage repayments each month and the longer you were out of work the harder the struggle would be unless you had a lifeline on which to cling. Providing your circumstances meet the criteria within it, then a mortgage protection policy could provide that lifeline.
A mortgage protection policy, when taken out after careful consideration, would begin to provide you with an income each month for up to 12 months and with some providers for up to 24 months and would pay you a tax free income after you had been out of work usually for 30 days or more. The cover can be taken out to safeguard against coming out of work through accident and sickness only; unemployment only; or accident, sickness and unemployment together.
A mortgage protection policy is sometimes called ASU insurance and it must be given some careful consideration. The majority of high street lenders push the cover alongside their loans at the time of selling the mortgage and this is where they rake in the biggest profits. A mortgage protection policy when taken this way will add thousands onto the cost of your mortgage and you might be left holding a policy that you have no hope of claiming on.
A much better way to purchase your mortgage protection policy is by going with a standalone provider such as ethical British Insurance. British Insurance are headed by Simon Burgess who has been providing award winning mortgage protection policies for years and Simon is very outspoken when it comes to the way the high street lender rips-off the consumer.
He says: “A mortgage protection policy can be a financial lifeline should you become unable to work, but it has to be given some very careful consideration especially when it comes to the exclusions in a policy. Always check the small print and ensure that you are happy that the cover gives you the protection you need.”
