If you want the best and cheapest mortgage protection insurance, you should buy it from a specialist instead of doing what seems like the easiest thing and getting it from a high street lender when you get your mortgage.
Even though it may seem like the best way to buy the cover, it's not. Most of the time, the premiums that high street lenders charge are way too high, and the coverage isn't as good as what a separate specialist provider can offer. In some cases, you could save hundreds or even thousands of pounds on the cover by going with a payment protection specialist. Since they specialise in the products they sell, they know a lot about them and can share this information with the customer so they can decide if the policy is right for them.
Mortgage protection insurance can be a safety net, but not everyone needs it, and there are some reasons why you might not be able to make a claim, so it might not be in your best interest to get it. You might not be able to make a claim if, for example, you only work part time, you have a long-term illness at the time you buy the policy, or you are self-employed. Even though these are common reasons why policies have exclusions, it is important to read the fine print of any policy you are thinking about getting.
If the coverage is right, it will start giving you a tax-free income so you can pay off your mortgage if you lose your job because of something like being laid off, getting sick, or having an accident. There is a waiting period, which is a certain amount of time that you have to be off work continuously. This is usually between 31 and 90 days, but once the cover has started to pay out, it will continue to do so for between 12 and 24 months, depending on the provider. Your mortgage is probably your biggest monthly expense, and you need to be able to pay it back if you don't want to fall behind on your payments and risk losing your home. Because of this, you should really think about how you would keep paying your mortgage if you were to lose your job for a long time.
A specialist insurance company can help you find cheap mortgage protection insurance. If you qualify for a policy, it's one of the best ways to give yourself peace of mind and security in a world where nothing is certain. Check the fine print and read the important information that all payment protection experts will give you, and mortgage protection will work as it should.
