Mortgage payment cover: a waste of money or a lifeline?
- 22ND SEPTEMBER 2007
The answer to the question depends on how you bought your mortgage payment cover. If you had understanding about it and knew your options when it came to buying a policy then it can be a great lifeline on which to rely if you lose your income through suffering from an accident, sickness or through unemployment.
However, if you bought mortgage insurance cover alongside your mortgage then you will have probably paid well over the odds for the cover and unless you actually asked about the key facts regarding the mortgage payment cover and the exclusions, you could have been mis-sold your policy, meaning it could be nothing but a waste of money.
Mortgage payment cover when bought with your circumstances in mind can pay out a monthly tax free sum of money each month to ensure that you are able to meet your mortgage repayments without having to struggle to find the money. A policy will start to pay out once you have been out of work usually for 30 days or more and will pay out for up to 12 months and in some cases for up to 24 months with some providers, which gives you peace of mind and security that you won’t be putting the roof over your head at risk.
In order to ensure that your mortgage payment cover is a lifeline you have to be aware that there are exclusions which can stop you from making a claim. Some of the most common reasons that stop the consumer from claiming include being self-employed, retired, in part time employment and suffering from a pre-existing medical condition. Also some of the more common reasons that keep people from work are excluded from most mortgage payment cover, such as back problems and stress related illness.
Shopping around is without a doubt the cheapest and best way to purchase your mortgage payment cover. A standalone and ethical specialist such as British Insurance offer not only the cheapest premiums for the policy but also give you the key facts and essential information before you buy your policy which ensures that you are able to make a much more informed decision regarding a policies suitability for your circumstances.
