Mortgage payment insurance: Can a policy be trusted?
- 19TH SEPTEMBER 2007
With the investigation into payment protection products still ongoing, you could well be asking yourself if a mortgage payment insurance policy can be trusted. When it is taken out correctly after reading the small print and being aware of the exclusions, mortgage payment insurance can be trusted and could make the difference between you losing the roof over your head or keeping it.
Mortgage payment insurance is taken out by paying a regular premium for the cover and for this it can provide you with a monthly income which would be tax free each month if you came out of work due to an accident, sickness or through unemployment. The cover would typically kick in once you had been out of work for 30 days or more and would continue to pay out for 12-24 months depending on your mortgage payment insurance provider.
Problems began with payment protection insurance products in 2005 after a super complaint was made to the Office of Fair Trading by the Citizens Advice; following this the Financial Services Authority handed out several fines to well known high street lenders for mis-selling the product. These lenders and banks failed to ensure that the consumer was given the essential details regarding their policy and often the cover was bought by those who were ineligible to claim.
The problem with a lack of information when taking out payment protection insurance is that there are exclusions and unless you go to an ethical provider such as British Insurance, the information can be hard to find and even harder to understand as it is filled with technical jargon. British Insurance however makes this information available in plain English which ensures that the consumer is able to make an informed decision regarding the policies suitability.
Managing Director of British Insurance, Simon Burgess, warns the consumer to shop around and get several quotes for the mortgage payment insurance cover while ensuring they understood the product before making the decision to buy. A mortgage payment insurance policy can be trusted and do the job it’s supposed to do providing you purchase it from an ethical provider who can back their product with experience and the key facts and exclusions of the policy.
