Mortgage payment protection insurance cover explained in simple terms
- 17TH SEPTEMBER 2007
The complexity of mortgage payment protection insurance cover is one of the biggest problems surrounding what can be an essential safety net on which to fall if you should lose your income after coming out of work due to an accident, sickness or unemployment.
Mortgage payment protection insurance cover could pay out a monthly income which would be tax free after you have been out of work for 30 days or more and would continue to give you an income each month for up to 12 months and with some providers up to 24 months. You can choose to cover accident and sickness only, unemployment only or accident, sickness and unemployment. A mortgage payment protection insurance can also be called ASU insurance.
The biggest problem with it and which has led to wide spread mis-selling of the product is the lack of information given at the time of taking out a policy. When a mortgage is taken out with the high street lender then mortgage payment protection insurance cover is pushed onto the consumer regardless of the fact of whether they could claim on it. Mortgage cover taken this way is very costly and can add thousands onto the cost of the mortgage throughout the life of the mortgage.
Choosing to buy the mortgage payment protection insurance cover independently can save you a great deal of money and if you go with a standalone provider such as British Insurance then you can save as much as 40% on your premiums when compared to the quotes offered by the high street lender.
Managing Director of British Insurance, Simon Burgess, is very anti the high street lender and he has good reason to be when they are pushing policies onto the consumer for extortionate premiums that are of poor quality when compared to the award winning products that British Insurance sells for a fraction of the cost. Simon always asks that the consumer shop around for their mortgage payment protection insurance cover and get several quotes to ensure that they get the best deal. He also says that they should be aware that a policy might not be suited to an individual’s circumstances and this is why British Insurance make their policies clear and give you all the information you need to make an informed decision.
Mortgage payment protection insurance cover can be a safety net and can help to keep the roof over your head if you lose your income but you have to ensure that you would be able to claim on a policy before you buy it.
