A cheap mortgage payment protection insurance policy could save your finances as long as you know what it covers and have checked the exclusions against your situation. If you lost your job because of an accident, illness, or being laid off, you would still have to come up with the money each month to pay your mortgage.
If you can't keep up with your mortgage payments, you could lose your home, and you can't count on the government to step in and help. Even if you are eligible for help from the state, the money they give you is not much.
A cheap mortgage payment protection insurance policy could give you a tax-free income each month to make sure you have the money you need to keep up with your mortgage payments. If you are out of work for 31 to 90 days straight, the policy would start paying out and keep doing so every month for 12 to 24 months.
But because there are some exceptions, mortgage protection is not right for everyone, even though it is a great way to protect your home. People who have a pre-existing medical condition, are self-employed, retired, or only work part time are usually not covered by health insurance. Providers can add more exclusions, so you should read the key facts of any policy you're thinking about buying.
Most of the problems with payment protection have been caused by the exclusions or by not making the customer aware that they exist. In 2005, the Financial Services Authority stepped in and fined a number of well-known stores on the high street. The Office of Fair Trading then sent the sector to the Competition Commission.
Even though there have been improvements, a recent review by the Financial Services Authority showed that some companies are still failing in some ways. The CEO of a mortgage company was recently fined personally and the company was also fined for not having the best interests of the customer in mind. The Financial Services Authority will keep cracking down by giving out personal fines, and in March 2008, they plan to start using comparison tables. Tables will help the customer figure out which coverage is best for them and let them know what is not covered and how much the coverage will cost.
Since people no longer trust the product, this means that many homeowners don't have valuable coverage and are at risk of losing their homes. If you shop with a company that specialises in payment protection, you will have access to the most important facts and all the information you need to make an informed decision about whether or not the product is right for you. Along with this important information, you will also get quality, low-cost mortgage payment protection insurance that you can count on to save your life if you ever need to use it.
