You are able to make savings of as much as 40% on the cost of the premiums for mortgage payment protection insurance if you choose ethical British Insurance as your payment protection provider. You would also be supplied with a product that is backed with years of experience and free information and advice so that you are able to check if mortgage cover would be suitable for your needs. Exclusions do need checking against your circumstances if you expect a mortgage payment policy to work in the way it is designed. Providing you do this before taking out the cover then you could fall back on the protection if you lost your income. A policy would cover accident, sickness and unemployment via redundancy.
You can take out the protection with British Insurance by insuring up to a pre-agreed amount of your monthly mortgage payment and then receive this back as a monthly income which would be tax-free. The sum of money would then go a long way towards you being able to meet the demands of the mortgage each month. You would not have to worry about falling into arrears and risk losing your home to the lender if you are unable to catch up. You would also not have to juggle around other bills in the hope of catching up on them in future as you would have the money each month towards the repayment.
Mortgage payment protection insurance (or MPPI for short) is a better way of ensuring that you would have the money needed to service your bills than relying on being able to claim State benefits or falling back on savings. Certainly, relying on State benefits would be disappointing. Not only would you would have to be eligible to claim money from the State but would have to wait several months before you would see any benefit. The income you did get towards your mortgage repayment would only go towards the interest part of the mortgage repayment and then only up to a certain amount. If you were to rely on savings these might let you down as they could run dry well before you got back to earning a living or found work again.
With British Insurance you would have to wait a period of 30 days of being unemployed or incapacitated before you would be able to put in a claim on your mortgage payment protection. Once you have made a claim the benefit would be backdated with British Insurance to day one of your unemployment or incapacity and then it would continue to provide your income for as long as 12 months. If you shop around you might find a provider that could offer 24 monthly payments but you would need to check in the policy small print to find this out before taking on the cover. You would also need to check when the provider would begin to payout on the cover as there are providers that might ask you wait to put in your claim up to 90 days of unemployment or from you being unable to work.
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