Archive for the ‘Mortgage Protection Insurance’

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.

Imagine being able to protect your ability to keep up with mortgage payments with a simple insurance policy. That’s the aim of mortgage protection insurance, a type of cover which can provide a cash lump sum each month for help with the monthly repayments in the event that someone loses their income due to being made redundant involuntarily, falling ill or ending up off work for a long period due to recovering from injuries sustained in an accident.

Of course, the big worry at the back of anyone’s mind during a severe downturn is the risk of repossession if they fail to keep up with repayments on their home. Some families will be able to keep going for longer than others if someone in the household lost their job for one reason or another. Sick pay packages can sometimes stretch on for a while, but may be inadequate for people who face a particular lay off. Redundancy packages vary greatly and some people may only get a few weeks’ worth of pay.

Mortgage protection insurance can be bought for a single person or a couple and will pay a tax-free sum each month, beginning about a month after the initial claim, if one person loses their job through no fault of their own. Protection is not normally provided for the whole of someone’s regular mortgage repayments, and policies normally start from 50 per cent. The more someone wants to insure, the higher the premium is likely to be. It is important to check with different insurers what the options are. Policies normally pay out for either 12 or 24 months following a successful claim. Some insurers offer products which pay out if someone has to leave work to become someone’s full-time carer, besides the reasons listed above.

To qualify, someone will need to be the named mortgage holder and will need to have held down a full-time job for a set period, typically around six months. When it comes to making a claim, pre-existing medical conditions will normally not be covered. This means any condition which someone received treatment for and was diagnosed with before they bought the policy.

Many people who have applied for a home loan may have been offered a form of mortgage protection insurance by their lender. Policies which are offered in this way may not be the best value. Some big high street companies have been criticised for selling insurance in this manner, and some have even been fined for providing policies to people who did not need them or who did not qualify. Remember to try more independent firms like British Insurance as well - they may be able to save you a considerable amount of money on cover.

Mortgage protection insurance can do a great deal for you if you should lose your income. In fact a policy could mean the difference between you losing your home through repossession if you cannot maintain the repayments and keeping it. You take on a policy by protecting a portion of the monthly mortgage repayment you make, which the provider of your choice pre-agrees with, against unemployment or incapacity. If you become a victim to one of these events the amount you chose to protect could be claimed each month for the duration of the protection.

If you chose to take out mortgage protection insurance with standalone ethical provider British Insurance you would be eligible to claim on the protection from the 30th day of your unemployment or incapacity. With British Insurance you can also choose to take out protection based on your needs. You might want to protect against accident, sickness and unemployment together. However you can just take out protection for unemployment or for incapacity alone. British Insurance also allow you to cover your mortgage repayments by choosing protection for 12 or 24 months and they backdate their cover to the first day of you being made redundant or from you losing your income to incapacity.

Protecting the repayments of your mortgage is essential as the results of missed payments can be every home owner’s worst nightmare, repossession. If you were to fall behind by just a couple of months with your mortgage repayments you would have to make an agreement to catch up with the lender. Without a steady income coming in this could be impossible and the lender would have no other option of course but to take your home through the court. A policy for a small premium which in the case of British Insurance would be based on the amount you choose to protect, length of cover taken, type of protection and your age. You could save up to as much as 40% when compared with high street lenders.

Mortgage protection insurance would come with some exclusions whoever you choose to take the policy with but British Insurance add in just a few and they provide you with information needed to determine the suitability. It is essential that you use the information and check the exclusions against your circumstances if you want to have the back up plan that a policy can provide. A policy can be a far better plan to fall back on than risking turning to using savings to get by. You could have to fall back on savings for several months while you recovered or found work and they might not last this long. If you rely on receiving benefits from the State you would only get help with the interest part of the mortgage and then only up to so much. You would also currently have to wait for many months before seeing any money.

Mortgage protection insurance could be your lifeline if you should lose your income as a result of accident, sickness or unemployment. You can protect up to so much of your monthly mortgage repayment which your provider would pre-agree with and then claim this back if you suffered from one of these events. The income you received back would be tax free and would go towards you being able to service your mortgage repayment.

Keeping up with mortgage repayments is essential as if you fall into arrears you will be at risk of the lender choosing to take repossession of your home. Each year thousands of homeowners lose their homes through no fault of their own because they cannot keep up with the mortgage payments. Mortgage protection insurance could stop you from becoming one of the statistics.

When you take out the mortgage with the lender they will usually ask if you want to protect your monthly repayments. However they offer mortgage cover at a high price and you can choose to take out a policy independently of the borrowing. By choosing to search around for mortgage payment protection you will make the biggest savings as all standalone providers compete against the other. One of the cheapest quotes you will receive will come from leading independent specialist provider British Insurance. They offer savings of as much as 40% on the monthly premiums and also offer premiums that are based on age. This means younger first time buyers can make the biggest savings.

With ethical British Insurance you can also choose the type of protection you want. You could choose to protect against being unable to work due to accident, sickness and unemployment together. However you might just want to protect against unemployment only or incapacity only. The type of protection will go towards determining how much you pay for the premiums along with the amount you choose to protect of your monthly mortgage repayment, up to the amount specified by the provider.

All Mortgage protection insurance policies would pay out for a fixed period of time and all come with a deferment period. If you choose to take protection with standalone independent provider British Insurance you could make a claim on the policy after day 30 and British Insurance backdate to day one of you being unemployed or from being incapacitated. You then have up to 24 months to make a recovery or to find work before the protection will cease. Shopping with other providers would mean you have to check the small print of the policy as there are some providers that ask you wait for as long as 90 days. Some will also pay out for up to 12 months only so again you need to check the terms of the policy offered. Finally you would have to check the exclusions as these can also differ, British Insurance adds in just the basic exclusions and provides you with the information needed.

Even at the best of times, a mortgage can be a tricky thing to have to deal with as it will usually be the single biggest debt a person faces during their lifetime. Thankfully most people will be able to handle their home loan, with a few ups and downs aside, but some will struggle and could find the whole burden too much to bear, especially if they do not have mortgage protection insurance in place to protect their ability to keep up with repayments.

Mortgage protection insurance is a type of cover which can be bought in the same way as many more traditional policies and is geared towards helping a home loan borrower keep up with the regular repayments should they lose their income after becoming ill, injured or being made involuntary redundant. In effect it provides a safety net should the worst happen and they be left without wages through no fault of their own.

This type of cover can be particularly important in a crisis as a home may be possessed by a lender if the borrower fails to keep up with repayments. If a house is shared by a couple, they might be able to keep going for a while with one person’s wages coming in after one fell very ill, for example, but they could face problems very quickly if the other lost their job through involuntary redundancy. A mortgage protection insurance policy for one or both of these people would pay a tax free sum each month, starting around 30 days after the initial claim, and could prove to be the difference between keeping hold of a house and facing repossession.

A policy will not normally provide protection for 100 per cent of someone’s mortgage repayments, and will often start at 50 per cent. Cover can be provided for a bigger slice, usually for a bigger premium – check with the individual insurer to find out what the options are. Time frames are also important to consider – how long will an individual policy pay out for and is it long enough? Most will pay out for 12 months following a successful claim, but some will stretch to 24. Some will also pay out towards mortgage payments for 12 months if someone has to leave work to become someone’s full-time carer.

One firm which can provide flexible mortgage protection insurance cover at reasonable prices is specialist payment protection provider British Insurance. Managing director Simon Burgess says: “Insuring the mortgage could be a good idea if someone doubts their ability to pay in the event of a crisis. The ability to keep the roof over your head with a little help for the home loan is worth its weight in gold in the right circumstances.”

Mortgage protection insurance can help you to avoid mortgage arrears if you lost your income through redundancy, accident or sickness. Cover can be taken by insuring a portion of your monthly mortgage repayment against these events and if you needed to claim you would get back the sum you insured as an income tax-free.

The money you received back from mortgage protection insurance would then go towards maintaining the repayments of your mortgage and would continue to do so for the term of the policy. You would have to check when you could claim and for how long the protection would last. If you choose ethical leading payment protection provider British Insurance you can claim from day 30 and there would be no excess as they pay back to day one of you becoming unemployed or incapacitated. You would then have 12 months to make a recovery or to find work before the policy would expire. You could find that some providers will offer to provide you with an income for up to 24 months if you check the terms and conditions. You also have to find out how long you would have to be unemployed or incapacitated as with some providers this could be as long as 90 days.

When checking the terms and conditions you should also check what exclusions are included. British Insurance will add in just a few exclusions but other providers could add in many more. It is imperative that you check these against your lifestyle before you take out a policy so you are sure that you would be eligible to claim.

If you should become unemployed or incapacitated and you have not got something to fall back on you would be at risk of losing your home to the lender. Just one missed mortgage repayment would be a worry as you would have to catch up and without an income this could be impossible. While the majority of lenders will try to make an agreement with you to catch up on what you owe, if you are unable to make agreement you will be taken to court. If the judge decides to rule with the lender then you will be given an eviction date and you must leave your home before this time.

Mortgage protection insurance can be a lifeline to cling too if you lose your income and it could make the difference between losing your home and keeping it. If you were to rely on using any savings you have it could be a let down as you might have to take many months away from work to recover and it could also take just as long to find work and savings might deplete. If you apply for State benefits towards your mortgage repayment you would have to be eligible and even then you only get help towards the interest payment of the mortgage and currently have to wait several months.

You can take out protection against accident, sickness or unemployment by insuring a pre-agreed amount of your monthly mortgage repayments against the above events with mortgage protection insurance. If you then became a victim you would receive back the sum you insured which would come to you as a tax-free income towards being able to maintain your mortgage repayments.

It is imperative that you keep up with your mortgage repayments no matter what happens. If you get behind by just a couple of months and have no hope of catching up the lender could choose to start proceedings to take you to Court. If the judge sides with the lender then you could be evicted from your home. With a policy behind you it would go towards servicing the repayment.

Mortgage protection insurance (also known as MPPI - mortgage payment protection insurance) can be taken with the borrowing, however usually you will pay well over the odds and if you get a quote with leading independent payment protection specialist British Insurance you can save yourself as much as 40% on the premiums. With British Insurance you can choose the type of cover you need based on your circumstances. You could choose full cover which would be accident, sickness and unemployment together. You might just want to protect against unemployment only or incapacity only and with British Insurance you can. A policy from them is also based on age and this goes towards what you would pay for the premiums. The younger you are the bigger savings can be made which is ideal for younger first time home buyers who often have little left over to pay out for mortgage protection.

There are many reasons why you should choose British Insurance over their competitors, besides the money you save. Their mortgage protection policies come with few exclusions and there is no excess as they pay back on the protection to day one of your unemployment or from you being unable to work. You can claim from the 30th day and you would then have 12 months of payments which would provide you with time to search for work or would allow you to concentrate on making a recovery. If you chose to look elsewhere then you would have to check the conditions of the policy to find out when the protection will begin to payout. There are some polices that come with a deferment period of up to 90 days. You also need to be aware of how long the protection would payout as there are providers that could extend the payments for as long as the 24th month.

Mortgage protection insurance from ethical standalone provider British Insurance is also backed up with their many years’ of experience in selling payment protection. All staff has been trained in selling payment protection and they are regulated by the Financial Services Authority so you can be sure of getting value for money.

Being able to maintain your mortgage repayments each and every month throughout the term of the mortgage is essential. If you cannot and you fall behind even by just a couple of months the lender would want you to agree to pay back what you owe while at the same time still servicing your regular payments. If you have lost your income through redundancy, accident or sickness then this would be probably be impossible and the lender would choose to start court proceedings to take your home. If you had taken out mortgage protection insurance you would not have this worry as you would have an income towards being able to continue meeting your repayments each month.

You would take out mortgage protection insurance (or mortgage payment protection insurance to give it it full name) by insuring up to a pre-agreed sum of your monthly repayment. This sum of money would be given to you as a tax-free income after you became unable to work or become unemployed for the period of time stated in the terms of the policy. You would have to check this as the terms and conditions would vary depending on the provider you chose to take out the cover with.

Ethical payment protection provider British Insurance would supply you with an income after the 30th day of you being unemployed or incapacitated on a continual basis. They would also date back the protection to the first day of your unemployment or incapacity and would then pay you an income each month for 12 months if you needed to claim for that long. After this period of time the cover would simply expire. You have to read the small print of polices offered by other providers as some might ask that you defer from putting in a claim for up to 90 days. You also have to check to see when the protection would continue paying to as some providers might offer a policy that would span 24 months.

British Insurance offer some of the cheapest premiums for mortgage protection insurance and they can offer you cover that would save you as much as 40% on comparison to taking the protection that is offered by the lender when taking on the mortgage. High street lenders charge way over the odds for the protection which helps them to bring in £4 billion in profits. Often along with this very little information is offered regarding exclusions which have to be checked against your lifestyle so that you are sure cover is suitable. British Insurance makes you aware of the exclusions on their website. You can choose to cover your mortgage repayments with British Insurance against accident, sickness and unemployment together, accident and sickness alone or unemployment alone. Their cover is also based on age which allows younger first time buyers who often stretch their budgets to the limit to be able to afford to protect the roof over their head.

Falling into mortgage arrears of course puts you in great danger of the lender repossessing your home. The only way you would be able to avoid such action would be if you could payoff the arrears and continue paying your regular mortgage instalments. If you have fallen into arrears as the result of a lost income, perhaps if you have been made redundant or if you have suffered from an accident or illness then making an agreement to catch up would be almost impossible. You can take out mortgage protection insurance to safeguard against the possibility of a lost income which would give you repayment peace of mind.

When taking out mortgage protection insurance you would insure up to a pre-agreed amount of the payment you make each month. This sum would then be given back to you if you should have to put in a claim on the protection. This income would go a long way towards you being able to keep on top of your mortgage each month and would provide peace of mind that if the worst should happen and you did lose your income you would not be at risk of repossession through mortgage arrears.

Mortgage arrears of just a couple of months would be enough for the lender to take court proceedings against you if you cannot reach an agreement to catch up on what you owe while at the same time continuing to meet the demands of your regular mortgage payment. If the judge ruled with the lender then you would be given an eviction date and you would then have to leave your home before or on that date. With mortgage payment protection behind you there would be no worry of repossession as you would have money to be able to go towards the repayments each month for a period of time.

If you get a quote from independent payment protection specialists British Insurance you would be given your first payment after you had been continually unemployed or incapacitated for just 30 days. They would back pay on the benefit to day one of your unemployment or incapacity and would then provide you with an income that lasted for 12 months. You could find that by shopping around some providers might offer to payout on their protection for anything up to 24 months but you would have to check the terms of the cover to find out. You would also need to check the terms of the policy to find out how soon you would be able to put in a claim. Some providers might state that you would have to be unemployed or incapacitated for at least a period of 90 consecutive days before payment would commence.

You would also need to look at the provider’s website for what exclusions would apply within the mortgage protection insurance cover they offer and these would need checking against your circumstances. Some providers could add in many exclusions while ethical payment protection specialist British Insurance puts in just the most frequently found exclusions. Once you have looked these over and decided that you would be eligible to make a claim then you would have a back up solution that you can rely on.

Providing you have checked that you would be eligible to claim, mortgage protection insurance is a far more reliable plan to fall back on than State benefits. With protection insurance you would know how much you would receive each month as this is the sum that you would insure against and which would be pre-agreed when you take out the insurance. It would then go towards your mortgage repayment and help to keep you out of arrears.

You could apply for help with your mortgage repayments if you became sick, suffered an accident or were made redundant. However you would only get help with up to a certain amount of the repayments and only with the interest part of the mortgage payment. You would also have to wait a period of time before you would see any money. Mortgage protection insurance is also a better plan than relying on any savings you might have in the bank. You could have to rely on savings for many months while you recovered or found work and they might not last. With an insurance policy you would have those months to rely on.

Independent payment protection provider British Insurance would supply you with the sum of money you insured once you had been unemployed or unable to work for a period of at least 30 days. They would also date back the protection to the first day of you becoming unemployed or from being incapacitated and would continue to supply your income for 12 months. During this time you would have peace of mind that is needed for you to be able to concentrate on attending interviews and getting a job or it allows you to recover.

It is essential to consider having something to fall back on and mortgage protection insurance could make a great deal of difference to you and your family. If you should miss a single mortgage payment the lender would want to know when you would be able to catch up. Miss another and you would have to go and see them and come to an agreement to be able to pay off the arrears while continuing with your regular mortgage payment. If you do not have an income coming into the home then such an agreement would be impossible to make. If no solution can be reached they would have no choice but to start Court proceedings to take your home and have you evicted. You would also see your credit rating in tatters which means obtaining credit of any kind in the future would be very difficult. Your mortgage insurance can give you the assurance that you would not fall into financial despair should you lose your income and will keep the roof over your head.