Mortgage protection made clear and simple
- 20TH SEPTEMBER 2007
If you want mortgage protection to work in the way that it was designed to do then it is imperative that you know what the product is capable of doing and the exclusions in it that mean you would be ineligible to claim. Mortgage payment protection insurance (MPPI) is one of a family of protection products and all have technical jargon associated with them that confuses the consumer, they all also have exclusions in the small print and unless this is made clear and simple a policy could be useless.
A mortgage protection insurance policy (or ASU insurance as it is sometimes called) is taken out to insure against the fact that if you came out of work due to an accident, long term sickness or through unanticipated redundancy you would still be able to make your mortgage repayments without struggling financially or risking losing the roof over your head.
Providing you meet the requirements set out in a policy then it would normally start to pay out after you had been out of work for typically 30 days or more and give you a fixed sum of money each month the amount of which would have been pre-defined when you took out the mortgage protection policy. This will run for usually 12 months’, and with some providers 24 months. However you have to be aware of the exclusions within a policy and these are what can stop you from being eligible to claim under your MPPPI policy.
An ethical mortgage protection insurance specialist will ensure this information is available to you before you buy your policy, such as payment protection specialist British Insurance. They make the information available by cutting out the technical jargon and giving you the essentials in plain English. Some of the general exclusions include being retired or a part-time worker or having a pre-existing medical condition at the time of taking out the policy and also many of the common reasons why a person might be out of work such as back problems and stress related illness.
