If you are looking for mortgage cover, then there are a number of considerations you have to make to ensure that you get the right deal for you.

However, before we discuss this, what exactly is it?

Mortgage cover – or mortgage payment protection insurance (MPPI) - provides invaluable protection against the financial distress caused by being made involuntarily redundant or being unable to work due to accident or sickness.

Should one of these events happen to you, the mortgage protection policy will step in and provide a tax free amount every month that can be used towards maintaining your monthly mortgage repayments. It can also help towards other mortgage related costs such as life and home insurance and utility bills.

It truly can be a financial safety net at an otherwise difficult time.

So, what do you need to consider when buying the mortgage cover? First of all, you have to read the terms and conditions of the policy you are considering, as they do vary from provider to provider, so always check the small print.

When can I make a claim?

Policy terms vary, so you can typically make a claim from one to three months after you are made unemployed or become too ill to work. Some providers will back date the mortgage cover to the first day of the claim, so you have to check the terms of the individual policy when comparing cover.

How long will I receive the benefits for?

Depending on the individual policy terms and conditions, a policy will pay out the benefits for 12 or 24 months, or when you return to work, whichever event is sooner.

Exclusions

Check out the policy terms and conditions to check that you would be eligible for the cover. There will be some exclusions and these would typically include any physical or mental condition, which you knew of or should reasonably have known about, at the start date.

And if you knew that you were going to be made redundant, again this would not be covered.

Most providers also ask that you have been in permanent full time employment for at least six months before you take out the cover.

People of retirement age would not be covered by most mortgage payment protection insurance policies.

The cost

You might think that taking out mortgage cover is simply another expense you cannot afford or do not need. However, mortgage cover does not need to be expensive.

By shopping around, you can find yourself affordable cover. When bought independently, from a standalone provider such as British Insurance, it can be extremely cost-effective.

Certainly, the price (and policy features and benefits)of mortgage policies do differ depending on where you choose to get a quote from. Historically, the high street lenders will charge more for the cover than the standalone providers. In some cases the difference can be quite a lot so shopping around in order to see what deals are on offer is essential. In the majority of cases, not shopping around could cost you up to 40% more than had you got a quote from a standalone provider.

Independent providers like British Insurance offer award-wining low cost payment protection insurance cover which regularly tops the ‘best buy’ tables of the finance press.

There is little doubt that mortgage cover can provide a financial safety net at a difficult financial time, so as long as you choose yours with care, you can enjoy full of peace of mind knowing that your home is safe no matter what life throws at you.

With press reports of around 130 families losing their homes every day to repossession, and the word ‘recession’ on most people’s lips, ensuring that your home is fully protected against what life can throw at you is probably a big concern for you. And that is why you need to consider mortgage insurance.

So, what exactly is mortgage insurance? Well, mortgage payment protection insurance (to give it its full name) can be taken out to ensure that if you were to be made unemployed via involuntary redundancy you would still have an income via a monthly cash sum, for up to a set period of time which is typically 12-24 months.

The mortgage insurance can also be taken to safeguard against the possibility that you might suffer an illness or accident (which is known as ‘incapacity’) that meant you were unable to work. It can also be taken to cover all three possibilities.

Usually the mortgage insurance would begin to pay out the tax free benefit from anywhere between one to three months after you being made unemployed or you becoming unable to work. As discussed before, these benefits will pay out for 12-24 months depending on the provider, which in most cases will give you enough time to get back on your feet or get another job.

The sum you receive can be used not only to help towards maintaining your mortgage repayments but also associated costs such as home, life and critical illness cover, meaning that even though you have lost your income, your home is protected.

There is little doubt, especially in the current economic climate, that mortgage insurance should seriously be considered as a financial safety net. With the number of repossessions soaring and redundancies rife, protecting the borrowing is essential.
As with all insurances, the terms and conditions of the policy will vary among the different providers. Do always make sure you fully understand the cover you are buying.

The benefits and features of policies will differ depending on where you choose to get the quotes for your mortgage insurance. Historically, the high street banks and lenders will charge more for cover than the standalone providers, such as the ethical provider British Insurance. In some cases the difference can be quite a lot so shopping around in order to see what deals are on offer is essential. For example, with British Insurance, premiums for mortgage payment cover come in at up to 40% less than those on the high street. The mortgage insurance cover can bought from them for just a few pounds a month for every £100 worth of mortgage protection required.

You may wonder what mortgage protection is and whether you need it. So, first of all, let’s take a look at how you home could be under threat. Repossessions are soaring and, according to a recent news paper report, some 130 families are losing their homes every day. The credit crunch has bitten us all hard and it is unlikely that there is no one who has not been affected. So, how would you protect your home if you were made redundant or became unable to work due to incapacity?

Redundancy package

Even the most generous of redundancy packages could soon be eaten away if you were unable to find a job straight away. Mortgage repayments, as well as other costs such as insurances etc could soon see any severance pay dwindle.

State benefits cannot be relied upon as the assistance they give will often not match all your monthly mortgage costs. You also have to meet strict eligibility criteria in order to receive benefits and even then, will have to wait several months before the payments become effective.

Sick pay

The same goes for sick pay. Even if your employer offers an extremely sick pay scheme, will it be enough to meet your monthly outgoings? The last thing you want to be doing when on your sickbed is worrying about paying the bills.

That is why mortgage protection insurance is so valuable. Should you make a claim, you will receive a tax free amount every month that can be used towards maintaining your mortgage repayments and other costs such as home insurance and life cover.

How the long the mortgage protection policy runs depends on the individual provider, but it will typically be for 12-24 months or when you are back at work - whenever is the sooner.

The mortgage protection policy will have a waiting period before you are able to start receiving the benefits. This is typically between day 30 and 90 of being out of work due to incapacity or involuntarily unemployed.

Some mortgage payment protection insurance providers will also backdate their policies to the first day of you being unfit for work or of involuntary unemployment, ensuring that you don’t lose out financially.

As you can see mortgage protection really can take away the stress and worry of how you will you manage financially in the event that disaster strikes, And by purchasing your cover from a standalone provider such as British Insurance, it does not have to cost a lot, with premiums starting from as little as a few pounds for every £100 worth of protection required every month.

So, you have been made redundant, unexpectedly, or you are off sick from work for a prolonged length of time and are without an income. How will you still pay the bills without an income? How will you pay for the roof over your head and to put food on the table? It is a worrying thought, especially in the current uncertain economic climate. However, the solution could be mortgage protection insurance.

Mortgage payment protection insurance (to give it its full name) – also known as MPPI - will provide you with a tax free sum, every month, that will help replace your lost earnings in the event of involuntary redundancy or incapacity.

Usually the mortgage cover will start to provide these benefits anywhere between one to three months after you losing your job or becoming unable to work, though there are some policies which will back date the benefits to the first day you are unable to work.

Subject to the individual provider’s policy terms and conditions, the insurance would then continue to provide the income - and therefore some financial peace of mind - for between 12 and 24 months, or until you are back at work, whichever event happens first. For most people, this should be more than enough time to find another job or recover.

Most importantly, it takes away a lot of the financial worry associated with being unable to work or redundant.

The cost

In todays troubled financial times and with every one of us feeling the pinch financially, paying out for yet something else may seem to be not a viable option. However, the true price and value of mortgage protection insurance is limitless. It can literally save the roof over your head, stopping you getting in to arrears and helping you maintain your mortgage repayments.

It is not always cost prohibitive either, if you know where to look. Mortgage protection insurance premiums can start from as low as a few pounds a month for every £100 worth of cover required if you buy from a standalone provider.

One such provider is the ethical British Insurance who has won many awards for their low cost, comprehensive mortgage payment protection insurance cover. Their policies are around 40% cheaper than those on the high street offered by banks and lenders.

Considerations

When choosing your mortgage protection insurance cover, do be aware that all policies come with exclusions. These are things that render a policy useless in the event of a claim. Such exclusions would be things such as a pre-existing medical condition or those in part time employment or of retirement age.

Income payment protection insurance is a way to protect your finances against you losing your income due to accident, sickness or involuntary unemployment. Should this happen to you, the policy will pay out a tax free cash sum every month for up to 12-24 months, leaving you free to focus on getting better or finding a new job.

Benefit eligibility usually kicks in from 30 to 90 days following unemployment or illness, with some insurers back dating the claim to the first day of unemployment or incapacity.

Income payment protection is part of the payment protection insurance (PPI) family. The product itself is fairly easy to understand. It is intended to provide monthly income support to help sustain the insured. Maximum coverage typically allows for payment of up to 50 per cent of the insured’s normal monthly job income, though this varies among the different providers.

Consumer awareness of the benefits of payment protection insurance is on the rise thanks to many factors. Among the primary reasons for increased awareness has been negative publicity tied to mis-selling practices. Citizen’s Advice, a leading consumer advocate group, submitted a super complaint to the Office of Fair Trading (OFT) in 2005, alleging several specific unethical selling practices used by payment insurance sellers.

Regarding packaging of products, the group noted that many lenders were pressuring customers into buying the insurance. More unscrupulously, some would bundle the insurance premiums into the loan repayment to hide the expensive costs. Some sellers have even sold the payment protections to ineligible part time employees and retired people. These people would pay for premiums but could never receive payouts.

As a result of the allegations, the OFT and Financial Services Authority (FSA) both conducted investigations of the payment insurance industry. The FSA used fines and sanctions to penalize sellers it felt were engaged in inappropriate selling activities. The OFT appointed the Competition Commission to further explore the industry for consideration of regulations or other techniques to improve the consumer experience and already positive changes have been made.

This means that consumers now have more awareness of what to look for when buying their insurance as well as where from. Certainly while they have been exposed to the dark side of the income payment insurance industry, they have also become much more knowledgeable about the products and industry itself.

Consumers are now more cautious when approaching lenders who have backed off a bit from pushy tactics. They are also more aware of the great payment cover insurance options available through independent insurance specialists such as the ethical BritishInsurance.

Simon Burgess from the company says: “The high profile that the PPI industry has seen over recent years, which has not always been positive, means that consumers now have more awareness and choice when buying their cover. Bought properly, income payment protection insurance can replace a lost income at a difficult time, meaning people will not fall further in to debt or suffer financially if they are made redundant or become too ill to work”.

With the economy going through a meltdown and the words ‘credit crunch’ on everyone’s lips, it seems like financially, everything is doom and gloom and we should be prepared to accept anything that life throws at us, such as redundancy or incapacity that forces us to be off work (and without an income) for some time. However, this need not be the case. With an income payment protection insurance policy, you would still receive an income in these circumstances.

It sounds to too good be true, doesn’t it? But income payment insurance really can help you financially should you be made involuntarily redundant or become too ill to work. This innovative policy provides a tax free monthly sum that will help you through the bad times and allow you to maintain your outgoings will looking for alternative work or recovering.

The money you get from the income payment protection insurance can be used for whatever purpose you wish, from maintaining rent or mortgage repayments to paying for fuel and food or even clothing.

Waiting periods

So, how does the income payment protection insurance policy work? Well, in the event that you lose your income due to one of the aforementioned reasons, you can make a claim on your cover. The insurance does come with a waiting period before the benefits will start to be paid out and typically this will be anything between day 30 and 90 after the event (ie you are made redundant or are unable to work due to accident or sickness).

However, there are some income payment protection insurance companies who will back date your claim to the first day, so look out for these policies.

Once your policy has started to pay out, it will continue to provide an income until you get back to work or for up to the period defined by the provider, whichever happens sooner. Some policies run for 12 months whereas you can get twenty four month plans but they will obviously work out more expensive.

How much will it cost?

Income payment protection insurance can be offered by the high street lender at the time of taking out some form of borrowing such as loan, mortgage or credit card. You may hear it also referred to as mortgage payment protection, loan payment protection, credit card protection or ASU insurance (the latter stands for accident sickness and unemployment insurance, but they all do more or less the same thing.

Purchasing your cover this way can often be the dearest option and a far more effective way to get income payment cover is by choosing to shop around for the policy. By going with a standalone provider such as British Insurance, you can get cover from just a few pounds every month for every £100 worth of protection needed, making it an affordable way to protect your finances.

Income payment protection insurance can provide a financial lifeline and in a world where nothing can be classed as certain, this is essential.

Loan payment protection is one of three common types of payment protection insurance (PPI). Payment protection insurance products are a portfolio of short-term insurance covers designed to assist displaced workers who rely on monthly income to meet their financial needs.

All of the payment protections are short-term in nature. They offer tax free cash benefits paid monthly over the 12 to 24 month period of the plans, depending on the individual provider’s policy terms and features.

The loan payment protection benefits will typically kick in 30 to 90 days after the covered event happens, following initiation of protection. Some policies offer the added advantage of back paying your claim to the first day of incapacity or unemployment, so do look out for this when shopping around for your cover.

Levels of cover

You can choose the level of cover you need based on your what your employer offers in terms of sick pay schemes and typical redundancy packages, so you only pay for what you need.

The three typical events eligible for benefits are involuntary redundancy, or illness / accident. Customers can buy protection against either redundancy or incapacity or all three. That is why the insurance can also be known as ASU insurance (accident, sickness and unemployment).

Loan payment coverage is designed to help those not able to work or who have been made unemployed to carry on meeting their monthly debt obligations. With revolving debt, including credit cards on the rise, most us of rely on a steady income to meet our monthly demands. Loan payment protection insurance usually provides benefits of up to 75 per cent of income, or 1,500 pounds, whichever is less.

Savings of 80%

The loan payment plans are often sold in combination with consumer loans but this is often not the most cost effective way to buy this invaluable protection. By going with a standalone provider, such as independent protection specialists British Insurance, you can make quite substantial savings on your cover. With British Insurance, this is up to 80% compared with a policy bought on the High Street.

With this lower cost premium capability there is no reason why loan holders should not do what is necessary to protect themselves and their families against the financial fallout of unemployment. Prolonged health, injury, and involuntary redundancy are all stressful on their own. A lack of financial security can be even more overwhelming to Brits already burdened by one of these circumstances. The investment in a loan payment protection insurance premium is an investment in security and peace of mind for the insured and families.

So, is mortgage payment protection insurance really as bad as the media makes out it is?

Mortgage payment protection insurance (MPPI) is usually offered by the high street lender at the time of taking out the borrowing, but, historically, taking protection this way if often the dearest option, with some £5 billion being raked in each year in profits from selling mortgage cover alongside borrowing.

Since the payment protection insurance mis-selling scandal came to light, where it was highlighted how many consumers had unwittingly bought protection insurance that was not suitable for them, or which they were ineligible to claim on, some improvements have been seen within the industry.

Many firms are making positive changes to the way that they sell payment protection insurance products such as loan cover and mortgage payment protection. The Financial Services Authority (FSA) have said that they will do everything in their power to improve the way protection insurance is sold.

The sector was referred for an in depth review to the Competition Commission and their final findings should be released in early 2009. However, they have already said they will ban policies being sold at the same time as taking out a loan, which allows consumers to fully investigate all their options and shop around for mortgage insurance that is right for them.

An independent provider can often offer cover at a cheaper price, often with added policy benefits. By going with a standalone provider such as the ethical British Insurance, for your mortgage payment protection, you can save around 40% on the cost, compared to those on the high street.

So, is it for you? While none of us like to be pessimistic, the truth is, none of us are infallible and at any moment in time, we could become unable to work and be without an income and that is why mortgage payment protection can be so valuable.
MPPI should seriously be considered as a financial safety net. With repossessions on the increase (the Daily Mail 21.11.08 reported that 130 families are losing their homes every day) and more first time buyers taking on huge mortgages, protecting the borrowing is essential.

It does not have to cost a lot as the premium charged for cover would typically be based on the level of cover needed, your age and how much your mortgage repayments are each month. With standalone providers can cost from just a few pounds a month for every hundred pounds’ worth of cover required.

Mortgage payment protection needs serious consideration. Homeowners’ relying on State benefits will be disappointed. And while your own personal savings could help over the short term, however, if you remained unemployed or ill they could soon be depleted.

How can you tell whether the mortgage payment protection insurance UK cover that you have is the right policy for you? Does it offer the protection you need? And is it at a realistic price?

But first of all, what does this invaluable protection actually do for you? The mortgage payment protection insurance UK insurance can take away the worry of how you will meet your mortgage repayments the event that you become unable to work due to injury, prolonged sickness or involuntary redundancy.

Also known as MPPI, this cover will give you a tax free cash sum every month to help towards you maintaining mortgage repayments should you lose your income due to redundancy, or because of recovering from an accident or illness that prevent you from working.

Tax free benefits

Each month the mortgage payment protection insurance UK cover would give you a tax free payment which would then continue for between 12 to 24 months, subject to the policy terms and conditions of the provider. This would normally be after a 30, 60 or 90 day waiting period after you are out of work before you can make a claim, so do check the small print of any insurance policy you are considering.

When choosing your cover, do also look out for mortgage payment protection insurance UK providers who will back pay your claim to the first day of unemployment or incapacity as this means you realise the full benefit of the cover and will not lose out.

How can it help you?

Mortgage payment protection insurance UK policies can help you keep the roof over your head. If you were to get behind on your mortgage repayments by even just a couple of months, the lender could start to seek repossession of your home. By investing in an MPPI policy, you can stop your home being seized. Certainly, with the credit crunch hitting us all hard, it makes sense to protect our income and our homes in whatever way we can. That is why mortgage cover can make sense.

The cost

You may feel that with finances being tight already, having a policy is something you can ill afford. However, with standalone providers, mortgage insurance can cost from just a few pounds a month for every hundred pounds’ worth of protection needed, making it a viable consideration for any homeowner.

How your premium will be calculated would typically be based on the level of cover needed, your age and how much your mortgage repayments are each month. Cover could be cheaper if you chose to only protect against incapacity only, or redundancy only. This could be an option for you depending on the type of severance packages and sick pay schemes that your employer operates, so do check this out.

That way you can ensure that you get the mortgage payment protection insurance UK policy that best suits your needs and at a price that suits your budget.

MPPI – or mortgage payment protection insurance to give it its correct title) can provide a financial safety net at a time when you need it most. Should you become unexpectedly and involuntarily redundant, or have to take time off work due to incapacity (eg accident or illness), then this payment protection insurance cover can step in and help meet your mortgage repayments by paying out a monthly sum.

The MPPI cover can start to provide a tax free income from between day 30 and 90 after you have continually being unemployed or incapacitated, subject to the insurer’s policy terms and conditions.

The insurance will then continue to provide you with a monthly cash sum for between 12 and 24 months, again, depending on the terms laid out by the individual mortgage insurance policy as how the long the benefits will pay out will depend on the individual provider.

Some MPPI insurers will also back pay their policies to the first day of you being unfit for work or of becoming unemployed. This means that you don’t lose out financially, so do look out for this additional benefit when choosing your cover.

As you can see, this invaluable insurance really can take away the stress and worry of how you will you cope financially should you lose your income.

Considerations

As with all insurances, the terms and conditions of the MPPI policy will vary among the different providers so it is essential that you fully understand the cover you are buying.

Mortgage payment protection insurance should be considered as a financial cushion in the event that the unexpected happens. With repossessions soaring and more first time buyers taking on huge mortgages, protecting your borrowing is essential. Do you really want to become another repossession statistic?

Can I afford it?

You may feel that you have enough saved to cover your mortgage repayments for several months’ should you become unable to work. But the sad fact is that your savings could soon be eaten up in mortgage repayments as well as other essential outgoings. With MPPI cover you would have a monthly income to help meet your costs. And it need not be expensive. When bought independently from a standalone provider, it can be extremely cost-effective.

The premiums for mortgage insurance can start from as little as a few pounds a month for every £100 worth of cover required if you buy from an independent, specialist provider such as British Insurance.

Certainly, individuals who rely on State support if they lose their income could be at risk of losing the roof over their heads. While some help towards the interest part of the mortgage can be available, you do have to qualify and currently having more than £8,000 in the bank or a working partner could mean you lose out. The insurance can take over where the State fails.

Finally, do note that some mortgage lenders will try to pressurise you into taking out MPPI alongside your home loan. If this happens, make sure you find out how much extra the cover will cost each month and then get on the internet and shop around. Most homeowners will find savings of up to 40%