Ensure you understand a mortgage payment protection insurance policy before you buy
- 9TH NOVEMBER 2007
Providing you understand a mortgage payment protection insurance policy before you buy then you can have security by way of an income each month if you should suddenly find yourself out of work through suffering an accident, sickness or through unemployment.
Cover can begin to provide you with a tax free income after a set period of time of being continually out of work, in the case of payment protection specialist British Insurance this can be from day 31 and would then continue for up to 12 months. However some providers ask that you are out of work for 90 days and the policy can then continue for up to 24 months so you have to check the terms and conditions of any policy you are considering buying.
There are reasons which can stop you from being eligible to make a claim, the most common include only working part time, being self-employed, suffering an ongoing illness or if you are of retirement age. Others are dependent on providers so it is essential you read and understand the small print.
A mortgage payment protection insurance policy can help to save the roof over your head as the State cannot be relied upon to provide you with the help if you should come out of work, this means that you could be left struggling each month to find the money to continue repaying your mortgage. If you were to get behind on the repayments then you risk losing your home to repossession, while the cover is not suitable for all circumstances if it is for yours then you have a valuable safety net.
British Insurance can provide you with all the information needed so that you can make an informed decision regarding the suitability of a mortgage payment protection insurance policy before buying and going with them you can save up to 40% on the premiums. A mortgage payment protection insurance policy can be taken out alongside the mortgage with the high street lender but very little information is given regarding the exclusions and cover can be expensive.
