Mortgage protection cover still needs to be more transparent
- 15TH NOVEMBER 2007
Although changes for the better have been seen since the investigation into the payment protection sector began in 2005 there is still much confusion and mis-selling going on with the Financial Services Authority (FSA) investigating over 4,000 cases in 2007. Mortgage protection cover has received a bad name along with the rest of the products and this is unfair. Clearly it needs to be more transparent because it is a valuable product to have, despite the adverse publicity.
When bought with understanding, mortgage protection cover can give a monthly income if you should come out of work after suffering from an accident, sickness or if you should become unemployed through such as redundancy. You do have to be aware however, that the cover is not suitable for all circumstances and you have to read the small print to determine if it is suitable for yours before you buy.
Typical exclusions include if you are only working part time, have an illness which is ongoing, are retired, self-employed or if you only work part time, there can be others so always check out the small print.
Mortgage protection cover can be expensive depending on where you purchase it and it is essential that you shop around with the specialist providers of the cover, one ethical specialist who offers some of the cheapest premiums for mortgage protection cover are British Insurance. British Insurance offer a policy that would begin to take care of your mortgage repayments from the 31st day of being out of work and would then continue for up to 12 months while saving you up to 40% on the premiums. Some policies with other providers will not begin to payout until the 90th day of being out of work but so ensure you check the terms and conditions in the small print.
