Mortgage protection: is it just a big “rip-off”?
- 13TH OCTOBER 2007
However, when bought from a standalone provider – who, historically, provides low cost mortgage protection insurance – and when taken out with your circumstances in mind, mortgage protection can be a very valuable product. It will give you a monthly income which will be enough to make sure that you can continue to repay your mortgage commitments each month without worry if you should come out of work due to an accident, being ill or through unemployment.
The mortgage protection can begin to pay you once you have been out of work for a pre-defined period of time which can range from 31 days to 90 days and would then continue to payout for up to 12 months and in the case of some providers for up to 24 months. This tax free income means that you wouldn’t have to worry about falling behind on your mortgage repayments and risk losing your home due to repossession. While homeowners would think that the State would step in should they become unable to work, the help they give even if you are entitled to receive financial assistance with your mortgage is very little.
One of the leading standalone providers of mortgage protection is British Insurance. They sell award winning payment protection insurance policies of which mortgage protection is just one that are backed up with experience in the subject and give all the information that is needed so that you can make sure the policy would be in your best interests.
