Mortgage insurance protection cover provides invaluable financial protection in the event that you lose your job due to unemployment via involuntary redundancy or due to incapacity (ie accident or sickness. The policy will pay out a monthly cash sum that is free from tax, should you lose your income due to one of the aforementioned events.
The protection insurance cover does come with a waiting period before you can make a claim and generally this will be anything between day 30 and 90 after the event. However, look out for cover providers who will back date your claim to the first day.
Once you have made a successful claim then the mortgage insurance will continue to pay you benefits for up to 12-24 months subject to the individual provider’s terms and conditions.
How to get a good deal
If you are looking for mortgage insurance protection cover, then avoid your lender and the traditional providers and shop around among the standalone companies in order to get good value but comprehensive cover.
Also known as mortgage payment protection insurance (or MPPI), currently the cover is usually offered by the high street lender at the time of taking out a homeloan. However, taking the insurance this way if often the dearest option, with these sources raking in around £5 billion in profits every year from selling the cover alongside borrowing. This is set to change by the end of the year, with the independent body the Competition Commission proposing to ban the sale of payment protection insurance within 14 days of the distributor selling a loan or other borrowing to the customer.
This gives customers looking for mortgage insurance protection cover the opportunity to shop around and compare products and providers which is a far cheaper way to get effective cover.
To get the best quality cover for your circumstances getting quotes and buying with a specialist provider is imperative. A specialist protection insurance provider is able to back up the products they sell with knowledge about them. And as they specialise in them, the staff selling the products are well trained. This helps greatly to ensure that the individual buys a policy that is suitable for their needs.
By going with a standalone provider such as the ethical and specialist British Insurance, for your mortgage payment insurance, you can save around 40% on the cost, compared to those policies on the high street. British Insurance offer award-winning and low cost payment protection insurance cover which regularly top the ‘best buy’ tables of the finance and consumer press.
Especially in today’s uncertain economic climate, mortgage insurance protection cover can provide a financial lifeline and peace of mind that you and your family would not lose your home should disaster strike.
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