Mortgage payment insurance has seen a shake up
- 22ND DECEMBER 2007
Following the findings of the Financial Services Authority when they began an investigation into the sector in 2005, mortgage payment insurance and the rest of the family of protection policies have seen a shake up. With new guidelines being set out by the Financial Services Authority mis-selling should be a thing of the past, but is it?
Recently the Financial Services Authority announced that that are investigating over 4,000 cases of mis-sold payment protection in 2007 which is twice more than the previous year. While mortgage payment insurance has come out better than loan payment protection, faith in the product has dropped which is leaving homeowners without any protection.
Mortgage payment insurance is invaluable, helping to save the roof over your head if you should come out of work after suffering from an accident, sickness or unemployment, providing it is sold correctly. There are some exclusions which could mean it would not be suitable for your circumstances but providing you buy the cover from a standalone ethical provider such as British Insurance you can get the key facts needed.
Typical exclusions include suffering from a pre-existing medical condition, being of retirement age, self-employed or only working in a part time position. However there can be others which are defined by the provider so it is important to check the small print of the policy.
British Insurance offer mortgage payment insurance which can save you up to 40% on a policy and cover from them would start to provide a tax free income from 31 days and continue for up to 12 months. Other providers might payout for up to 24 months but not begin paying out until the 90th day. Clearly restoring faith in mortgage protection still has a long way to go but specialist providers such as British Insurance are doing their part by providing quality low priced cover with the information needed.
