Cheap mortgage payment protection can be made to work for you
- 6TH SEPTEMBER 2007
Providing you have ensured that cheap mortgage payment protection is suitable and meets your needs then it can be made to work for you should you find yourself unable to work. Mortgage payment protection insurance (MPPI) is just one of a family of protection policies that safeguard against the possibility of you coming out of work because of accident, long term sickness or unforeseen unemployment.
A cheap mortgage payment protection insurance policy can be taken out to cover against the fact that you might lose your income due to accident and sickness only; unemployment such as redundancy only; or accident, sickness and unemployment together. The majority of policies will pay out for up to 12 months and with some providers for up to 24 months. It will give you a monthly income which is tax free which ensures that you are able to meet your monthly mortgage repayments with no fear of having your home repossessed.
Simon Burgess, MD of standalone payment protection insurance providers British Insurance says: “Sadly many people are under the false impression that the State will step in and give a helping hand, while you might be eligible to receive some help the financial assistance they give is very little.
“Mortgage payment protection insurance can give peace of mind providing that you have made sure that a policy is suited to your needs by being aware of the many exclusions within a policy. Some of the most common include if you are of retirement age, self employed, are only in part time work or if you have a pre existing medical condition. There are also many common problems which you wouldn’t be able to claim against on most policies including back problems and stress related illness.”
He adds that when it comes to getting cheap mortgage payment protection then you have to shop around and buy it independently rather than taking the policy offered at the time you take out your mortgage. Buying mortgage protection from the high street lender is anything but cheap and you aren’t given the essential information needed in order to make an informed decision regarding the policy’s suitability.
