Q: If you take out a mortgage protection insurance plan and the unexpected did happen, you lost your job, than how long would your monthly payment be paid for? Would you have to pay it back? and what is the difference between me taking out the insurance and not, for the government paying my monthly payments? As I am the only person with this mortgage and have children in employment, just thinking in a worse case scenario, if I did lose my job what could happen? as I have known people to get help of the government without selling there house and being re-housed in council property. I only small mortgage what I have had quite secure at moment, I don’t have any cover.
A: We are not financial advisers so we cannot advise on how the government scheme works.
As brokers we are able to provide information on our payment protection insurance policy. The policy we provide is a payment protection policy, it allows you to cover £1500 or 50% of your gross monthly income whichever is the lower amount, at the point of claim the money goes to you to use as you wish.
There is a 120 day initial exclusion period at the beginning of the payment protection insurance policy if you were to lose your job or be made aware of losing your job within that time period then you could not claim on the policy.
Once you are eligible to claim it is a 30 day waiting period and back to day one. For example if you lost you job you would register at the job centre, you would wait 30 days, during the 30 days you would make the underwriters aware that you are making a claim in the near future, on the 31st day you would put your claim in and it would go back to the first day you registered at the job centre.
Full payment protection insurance policy wording and a quick quote facility are available online at www.britishinsurance.com.
If we can be of further assistance please do not hesitate to contact us again either by email or on 08450 175 178.