Just as you would shop around for a new TV or similar, so you do so too for your mortgage payment protection insurance (MPPI) cover. You can do this by getting a mortgage protection quote from an independent provider.
But first of all, what does the cover actually do? The concept is that it protects your home from repossession – which is especially comforting in these troubled economic times. In the event of you being made redundant or becoming incapacitated, the policy will step in and help you carry on meeting your mortgage repayments by providing a tax free lump sum every month.
How does it work – when can I claim?
Policy terms and features will vary among the different mortgage protection providers, but typically, there will be a waiting period before you can make a claim. Usually this will be anything between day 30 and 90 after the event. Do look out for insurers who will backdate your claim to the first day, so you can feel the full benefit of the cover then.
Once the claim starts to pay out, it will provide the monthly benefit for up to 12-24 months depending on the policy small print, or until you get back to work. This should give you more than enough time to find a new job or get back on the road to recovery.
Do I really need it?
You might think that mortgage payment insurance is an expense you don’t need at a time when you are already financially stretched. Or maybe you plan to live off any savings in the event that you lose your job or otherwise are unable to work. However, this type of thinking is why so many homeowners sadly lose their homes because they cannot meet their monthly mortgage repayments for whatever financial reason they’re facing.
If you shop around, you can get a low cost mortgage protection quote. In fact, by going with a standalone provider such as British Insurance, you can save around 40% on the cost of the cover, compared to those on the high street.
Managing Director of British Insurance, Simon Burgess, is a staunch campaigner for consumer rights when it comes to the selling of mortgage protection insurance and regularly campaigns to this effect, meaning you’ll get a fair deal.
Considerations
When choosing your cover, do compare the policies on a like for basis so that you get the right level of cover. Things to look out for include the exclusions. Some exclusions are universal to all protection policies and can include being of retirement age, suffering a pre-existing medical condition, or if you are only in part time employment. Providers can add in others so checking the wording of the terms and conditions is essential before you sign on the dotted line.
Finally, note that some providers will provide a mortgage protection quote that only covers your monthly mortgage repayments. Remember to include protection for the cost of your mortgage life insurance and your home and contents insurance as well as any other mortgage related costs.
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