Mortgage Protection Insurance through your Bank – Vote with your feet
Filed under: Mortgage payment protection insurance, Mortgage protection insurance
The Banks have come in for a lot of flack in recent times and do you know; they do deserve it
Let’s look at the back catalogue shall we:
Irresponsible lending, leading to a collapse in the financial system
The unreasonable overdraft charges debacle
Failure to pass on B.O.E. rate cuts to customers
Removal of tracker rate products from the mortgage market
………and criticism over shoddy sales practices and price of Mortgage Payment Protection Insurance (MPPI) to their customers.
Well with MPPI you get the chance to vote with your feet!
Over 25% of mortgage payers have Mortgage Payment Protection Insurance; this cover pays your mortgage, at a time when you can’t; for example, involuntary unemployment or inability to work, due to sickness. This cover is a saviour to many at a time when the economy is in tatters and many, many jobs will go.
Now if you have Mortgage Payment Protection insurance; well, good move, you should be sleeping fairly soundly at night.
If you have MPPI and are being ripped off with the bank, would like to change, but are aware that if you do, you could be exposing yourself to the risk of the new policies 90 day initial exclusion period; there is some good news.
Some better quality Mortgage Payment Protection Insurance Policies, will, if you transfer from another insurer, give immediate cover, avoiding the initial exclusion issue.
Not all Mortgage Payment protection Policies, offer this facility, so it is very important to read the policy booklet carefully.
As always, best shop on the internet in a nice free non pressure environment.
Mortgage Protection Insurance What to Look Out For
Filed under: Mortgage insurance, Mortgage payment protection insurance, Mortgage protection insurance
Mortgage Payment Protection Insurance (MPPI) is a form of mortgage insurance designed to cover your mortgage payments, in case anything happens to cause you to lose your income.
You may find that when you take out a mortgage, your lender automatically offers you MPPI. Sometimes they try to give you the impression that it’s obligatory. But don’t let yourself be bullied into taking out their policy unless you are sure it’s the best one. You can often get a better deal by shopping around.
Maybe you feel you don’t want to do this. Taking out a mortgage can be a lengthy, exhausting and time-consuming experience. It’s incredibly tempting to grab the policy the lender offers you, rather than start another lengthy process. Especially if you don’t really know what you’re looking for.
However you could really save money by shopping around. Of course you want to find the lowest premium – but premium levels are not the only factor. Here are some pointers to help you know what else to look out for.
- Unlike most other forms of insurance, mortgage protection insurance policies usually ignore age, health, smoking/non-smoking etc. Just a few give reduced rates for younger age-groups – under 30 or under 40 – so if this applies to you, it’s worth checking this out.
- When will it pay out? Most mortgage protection insurance policies don’t start paying out till a month, or sometimes two months, after the problem (accident, redundancy, or whatever) starts. Now there are a few that backdate the payments to day 1, so you may prefer to choose one of those.
- What is the payout term? Most mortgage protection insurance policies limit their payout term – usually to 12 months. They reckon that most people will have found another job, recovered from their illness, or obtained state benefit by then. But this doesn’t always happen. Try to find one that will pay out for as long as possible – at least two years.
- What is the maximum payout level? Some mortgage protection insurance policies put a ceiling on the amount of their monthly payment during the payout period. If you have a bigger mortgage, or if interest rates have risen, this amount might not be enough to cover your repayments. Try to find out what the repayment policies are.
Sometimes it can be quite difficult to find out exactly what the payment policies are on different mortgage protection insurance policies. It’s worth consulting a broker to make sure you find the best possible deal.
When Can Cheap Mortgage Protection Insurance Protect You?
Cheap mortgage protection insurance is underestimated by the vast majority of people, despite the major impact it can have on individual homeowners’ lives. Many individuals who are set on purchasing home insurance to protect their belongings often fail to protect their home itself with cheap mortgage protection insurance.
As with every insurance policy, there are exclusions associated with the cheap mortgage protection insurance out there. Firstly, most providers understandably do not cover an individual homeowner if he or she should lose a job as a result of their own actions, nor if they tale voluntary redundancy. They will ask for information on redundancy claims and may not pay out if an individual was fired instead. However, involuntary redundancy is covered under cheap mortgage protection insurance policies if you have selected that option within your cover.
More and more companies are going out of business every year as a result of many industrial factors. It may be that a business relocates or that it is no longer making a profit. There are a variety of reasons why a business would make its workers redundant, and cheap mortgage protection insurance can help to soften the blow by covering any mortgage repayments and associated costs such as home insurance, typically for up to twelve months, but in some cases, up to 24 months’.
Individual cheap mortgage protection insurance policies may have waiting times attached to the terms and conditions. For example, some stipulate that a homeowner would have to wait for a calendar month before claiming. There are very few cheap mortgage protection insurance policies that come into force straight away. However, despite this exclusion, cheap mortgage protection insurance can most definitely come in useful in either of the situations above and should be considered as a solution to protecting an individual’s financial future.
Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of cheap mortgage protection insurance, income protection insurance and loan protection insurance.
