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.
For many years I have been a staunch campaigner against the major names in finance who, I believe, rip-off their customers by selling over priced, often unsuitable payment protection insurance (PPI) cover.