Mortgage Payment Protection Insurance Explained

Mortgage Payment Protection Insurance Explained

Mortgage Payment Protection Insurance Explained
Mortgage payment protection insurance is​ taken out in​ order to​ safeguard the​ possibility that you​ could come out of​ work due to​ an​ accident,​ long term illness or​ through unforeseen unemployment .​
The cover will usually pay out for up to​ a​ period of​ 12 months (with some policies,​ it​ will be for up to​ 24 months) providing you​ have been out of​ work for a​ defined period of​ time,​ which is​ usually around 30 days though can be longer depending on​ the​ policy .​
Your monthly mortgage repayment is​ without a​ doubt probably the​ biggest outgoing and as​ such if​ you​ were to​ come out of​ work how would you​ be able to​ afford to​ keep up the​ repayments? the​ State does very little to​ help financially,​ so unless you​ have a​ nest egg of​ your own,​ then taking out cover to​ protect your mortgage is​ essential.
A mortgage payment protection policy can be bought alongside the​ mortgage and unfortunately this is​ the​ most common way and usually the​ dearest option when it​ comes to​ taking out the​ insurance .​
The only way to​ get a​ cheap quote for mortgage payment protection is​ to​ shop around and go to​ an​ independent provider .​
Not only will you​ make huge savings when compared to​ going with a​ high street lender,​ but you​ should also benefit from expert advice.
If you​ are concerned about the​ recent bad publicity that the​ sector has earned then there are some factors that have to​ be taken into account .​
Firstly,​ it​ is​ not the​ product itself that is​ at​ fault but those few providers who get greedy and put huge profits ahead of​ the​ consumer’s best interest .​
When it​ comes to​ pointing out those who have been known to​ mis-sell policies in​ favour of​ high profits they include the​ well known high street banks and lenders and this alone should tell you​ to​ go to​ a​ specialist standalone provider for your mortgage payment protection insurance .​
Along with high premiums,​ research from organisations such as​ the​ Financial Services Authority has shown how some of​ the​ high street lenders know very little when it​ comes to​ recommending and selling policies,​ leaving some consumers with a​ worthless policy when it​ comes to​ claiming .​
a​ standalone provider will usually deal just in​ protection policies and as​ such can give excellent advice along with a​ quality product.

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