Mortgage payment cover easier to understand in early 2008
- 23RD DECEMBER 2007
One of the best changes to come out of the investigation into the payment protection insurance (PPI) sector is the introduction of comparison tables in March 2008. The tables – implemented by the Financial Services Authority (FSA) - are designed to make mortgage payment cover and the rest of the payment protection products more transparent and easier to choose.
By answering a series of questions the consumer will be able to make an informed decision regarding the suitability of the product and also how much it will cost. A lack of knowledge regarding the exclusions which exist in all payment protection polices led to many individuals being mis-sold cover and also brought about a decline and mistrust in the products.
Mortgage payment cover can provide a safety net on which to fall if you should find yourself unable to work after an accident, becoming ill or being made unemployed by such as redundancy. Rather than be left struggling to find the money each month if a policy is suitable for your circumstances then it could payout a tax free income which is used to carry on repaying your mortgage.
Taking your policy out from a standalone and ethical provider such as British Insurance you can be certain you will get access to the key facts of a policy before you buy, which means you can make a decision regarding the suitability. There are exclusions which are common such as being retired, self-employed, only working part time or if you have a pre-existing medical condition at the time of taking out the cover.
Until the emergence of the tables, a standalone ethical provider is really the only way of having peace of mind that you get the key facts and of being sure the product is explained in plain English.
Mortgage payment cover, along with the rest of the family of protection policies, needs to be made more transparent if consumers are to be able to buy what could be a lifeline along with peace of mind that they have made the right choice.
