Cheap mortgage insurance can give you peace of mind and the money you need to keep paying your mortgage even if you lose your job. This way, you don't have to worry about losing your home if you lose your job. If you lost your job because of an accident, illness, or being laid off, the cover could be a safety net until you got back to work.
Most policies would start giving you a tax-free monthly income after you had been out of work for between 31 and 90 days, depending on the provider. Then it would go on for another 12 to 24 months. Getting cheap mortgage protection can give you peace of mind, but you need to make sure it's right for you because there are things it won't cover.
If you only work part-time, are self-employed, have a pre-existing illness, or are old enough to retire, mortgage insurance might not be the best choice for you. Even though these are the ones that are most common to all payment protection policies, the provider can add others. This means that you must read the policy's terms and conditions before you sign up for the coverage.
Mortgage payment protection insurance (MPPI) and the rest of the family of protection policies have gotten a bad name, but the products themselves are not to blame. When you buy a policy with the right information so that you can make sure it fits your needs, it will do what it is supposed to do. Providers sold policies wrongly because they didn't know how to sell them well. Most of these policies were sold with a mortgage. Not only do you not get the information you need, but this is also the most expensive way to get coverage. In 2005, a super complaint to the Office of Fair Trading (OFT) brought to light problems in the sector. The Financial Services Authority started an investigation before the OFT sent the sector to the Competition Commission, which is now doing an in-depth review.
Some people don't even know that they can get the coverage from a separate company and shop around for the best price on the premiums. Premiums for the insurance depend on how much coverage you need for your mortgage and how old you are when you get the insurance, but they can be different from one provider to the next. An independent, stand-alone provider will always offer cheap mortgage protection. The information and key facts of the policy should also be included so you can decide if it's right for you.
The cost of the coverage and the exclusions and terms and conditions vary from one provider to the next, so it's important to compare every cheap mortgage protection policy you're thinking about getting, not just the cheapest ones. Until the comparison charts come out in March 2008, which should open up the coverage and explain what it doesn't cover, how much it costs, and which coverage is best for you, your best bet is to go with a specialist.
