Shop around for a mortgage protection policy
- 14TH NOVEMBER 2007
When it comes to taking out a mortgage protection policy then you have to shop around for the best possible deal just as with anything you would consider buying. If you shop around you can not only find the product for the best premiums possible but also will gain valuable information regarding the limitations of a mortgage protection policy.
A mortgage protection policy along with the rest of the payment protection insurance (PPI) family of products has earned itself a bad name and subsequently sales in the product have dropped with faith in it being lost.
However, one thing you should remember about the bad publicity is that it is not the actual products that are at fault but the way they are sold. Mis-selling came to the public’s attention in 2005 after a super complaint was made by the Citizens Advice to the Office of Fair Trading which highlighted widespread mis-selling.
It was the lack of information given at the time of buying the cover that led to many people taking cover that they were ineligible to claim on. With little or no information given regarding the exclusions (the most common include if you are of retirement age, self-employed, suffering from a pre-existing medical condition at the time of taking out the cover or if you don’t work full time), the policies were not worth the paper they were written on.
However, providing the mortgage protection policy would be suitable then the policy could begin to payout once you have been out of work for between 31 and 90 days. With the specialist provider British Insurance this is from day 31 and would then continue for up to 12 months. Some providers will not begin to payout until anything up to the 90th day and can continue to pay for up to 24 months so it is essential that you read the terms and conditions before buying the cover.
When bought correctly mortgage payment protection can be a safety net on which to fall but you have to have ensured that it is suitable for your needs before you buy it and this can only be done by taking the advice a specialist can give.
