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Mortgage payment protection insurance - Instant quote.
Premiums start at only £2.45 per £100 of monthly benefit.
All policyholders receive 3 months free cover.
You get the reassurance of back-to-day-one cover
Which means you receive tax free benefits paid from the first day of a claim.
This insurance product topped the WHICH? best buy survey mortgage payment protection
insurance.
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Explaining mortgage payment protection insurance
Trying to work out how long your savings would last for if you were unable to work
as a result of being made redundant or suffering a health setback can be a pretty
frightening exercise.
In the current era of sky-high house prices many people would find that any spare
cash was swallowed up by the mortgage payments alone within only a few months. After
all, anyone with limitless reserves is most unlikely to need a mortgage in the first
place.
Those who assume that the so-called “State safety net” will bail them
out in their hour of need may find that they are in for an unpleasant surprise.
Come the crunch, most homeowners would not be eligible for any State assistance
with their mortgage by virtue of the fact that they have savings totaling over £8,000
or a full-time working partner.
Even the minority who do qualify for State support will receive no help with capital
repayments and will only get help with interest payments on mortgages of up to £100,000.
Furthermore, this will not be available for the first nine months for those who
started their mortgages after October 1995.
But it is possible to take out private insurance against the consequences of losing
your income. Mortgage payment protection insurance provides a regular monthly benefit
if you are unable to work as a result of illness, injury or unemployment.
Mortgage Payment Protection Insurance typically pays out for a maximum of one year,
although a small minority of Mortgage Payment Protection Insurance policies pay
for two years, and it can be used to cover both interest and capital repayments
together with other mortgage outgoings like premiums for endowment or household
insurance policies.
A major attraction of Mortgage Payment Protection Insurance is that older people,
smokers and those with poor medical histories are not penalised. All Mortgage Payment
Protection Insurance policyholders pay the same pro-rata premium rate, but pre-existing
conditions (medical conditions that policyholders have prior to coming on cover)
are excluded.
The most competitive Mortgage Payment Protection Insurance providers charge less
than £4 a month per £100 of monthly benefit covered. So it can be possible
to cover a modest mortgage for around £20 a month - an amount that won’t
necessarily leave you with much change from a round of drinks nowadays.
Nevertheless, be warned that mortgage lenders often charge far more than this for
Mortgage Payment Protection Insurance. The quality of their Mortgage Payment Protection
Insurance cover is also often markedly inferior to that sold by specialist Mortgage
Payment Protection Insurance providers. For example, they often don’t pay
out until an initial 60 day exclusion period has elapsed, whereas specialist providers
normally offer cover that backdates payments to day one
But even the very best Mortgage Payment Protection Insurance policies are not guaranteed
to suit everyone. Those who have illnesses that are likely to reoccur may for example,
decide that the exclusion for pre-existing medical conditions makes the Mortgage
Payment Protection Insurance cover poor value.
Similarly Mortgage Payment Protection Insurance can fail to appeal to the self-employed
on the grounds that it only pays out if they cease trading altogether and will not
help them if they simply hit a quiet patch.
Even those in employment should be aware that Mortgage Payment Protection Insurance
only pays out for unemployment that is involuntary. If they take voluntary redundancy
they will not therefore be covered.
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