If you want cheap mortgage protection, shop around with a specialist provider
- 1ST NOVEMBER 2007
Cheap mortgage protection can be found but you do have to buy it independently as opposed to purchasing it out alongside your mortgage at the time of taking out your mortgage with the high street lender. The majority of mortgage payment protection insurance (MPPI) is taken out alongside the mortgage either because of a lack of knowledge that the product can be bought independently or simply because taking it out together seems the easiest option.
However by shopping around with a standalone provider you can make huge savings over the term of the loan by going with a specialist ethical provider such as British Insurance. British Insurance can help you to save as much as 40% on protection for your mortgage when compared to taking the cover from the high street lender.
Cheap mortgage cover can give you an income once you have been out of work for a set period of time which can be anything from 30 to 90 days of being out of work continually. The money would ensure that you wouldn’t get behind on your mortgage repayments and so wouldn’t be at risk of repossession. Once the cheap mortgage protection cover has kicked in then it would continue to give you the monthly income which was determined at the outset and which would be tax free. Quotes are given based on your age at the time of taking out the cover and how much you want to cover each month.
The cover protects against coming out of work due to suffering from an accident which caused you to be out of work, through sickness or if you should become unemployed by such as redundancy, the majority of policies continue paying out for up to 12 months although some providers will extend this period to 24 months. However there are exclusions in all policies that can mean you would be ineligible to claim on a policy and these are noted in the exclusions.
Typical exclusions that can be found in all policies include if you are working for yourself, are only working part time, if you have an ongoing illness at the time of taking out the policy or if you are of retirement age. It is essential that you check out the small print of any policy you are interested in taking out as the exclusions can vary slightly from provider to provider.
If you want cheap mortgage protection then it is essential that you shop around for the cover, the premiums do vary greatly as does the quality of the policy. All ethical providers should make the quotes easy to understand so that you know exactly how much you will be paying out in total for the cover over the term of the mortgage, key facts should be supplied in easy to understand terms and providers such as British Insurance are the most ethical and always ensure that you have the vital information needed so that you can make the decision regarding the policies suitability for your circumstances.
Cheap mortgage protection doesn’t necessarily mean that the product is inferior and the same applies to the products that come with the huge premiums, just because it costs more it doesn’t mean its better and in fact policies bought lenders charging way over the odds are often far inferior to those sold by independent specialists such as British Insurance.
