Cheap mortgage insurance still suffering from problems
- 1ST DECEMBER 2007
Since problems began for the payment protection insurance (PPI) sector in 2005 when the Office of Fair Trading received a super complaint from the Citizens Advice, cheap mortgage insurance is still suffering from the backlash. While mortgage insurance has had problems just as the other payments protection products, to be fair it has not been mis-sold as widely as the other payment protection insurance products such as loan insurance.
Cheap mortgage insurance can be taken out from a standalone specialist provider such as British Insurance and by taking your cover from an ethical specialist you can guarantee that you will have access to the key facts needed to make an informed decision as to the suitability of the cover.
When bought with the exclusions in mind, mortgage payment protection insurance can begin to pay out once you have been out of work for between 31 and 90 days depending on who you go with for your cover. British Insurance will begin to provide you with a tax free lump sum payment from the 31st day after the event and will continue for up to 12 months which means you are not left struggling with your monthly mortgage repayments.
The cover can be taken out by those who fear they might find themselves unable to work after suffering an accident, sickness or through unemployment such as redundancy. You have to make sure your circumstances would permit you to be eligible to make a claim. If you are retired; only in part time work, suffering from an illness or self-employed then a policy would not be in your best interests.
It was the poor selling techniques which caused the majority of mis-selling and problems and not the actual products themselves. When bought correctly cheap mortgage insurance can be a financial lifeline and will help you to keep up with your mortgage repayments so that you are not at risk of repossession.
