Understand a mortgage protection plan before you buy it
- 20TH SEPTEMBER 2007
It is essential that you understand your mortgage protection plan before you actually buy the product. There are many factors that leave the consumer unaware of whether the product is actually suited to their needs and if they would be able to claim successfully on the policy. Along with this the high street lender would have you believe that protection has to be taken out alongside the mortgage at the same time a buying the mortgage.
Buying a mortgage protection plan alongside the actual mortgage is the worst possible mistake to make; the cover is often mis-sold due to very little information being given regarding the mortgage protection plan and the exclusions within it at the time the policy is sold. If you want to have the peace of mind that a policy can bring then you have to understand it before signing on the dotted line.
Shop around for the best premiums along with the essential information with specialist payment protection providers when it comes to taking out your policy. Some of the most common exclusions listed in the small print of policies include having a pre-existing medical condition, being retired, self-employed or many common illnesses and conditions such as back problems. The exclusions will vary from provider to provider and this is another reason for shopping around for the cover.
When getting a quote from standalone providers you will have to decide if you need cover for accident, sickness and unemployment, accident and sickness only or unemployment only. An ethical standalone provider such as British Insurance will make understanding the quote easy as they quote you for every £100 of cover.
A mortgage protection plan could save your home from repossession if you couldn’t afford to make your repayments if it is bought carefully and will start to pay out after you have been out of work usually after 30 days or more. It will provide you with an income each month to ensure that you are able to keep up your mortgage repayments, and will continue to pay out for up to 12 months and with some providers 24 months.
