Take Care When Buying Mortgage Insurance

Take Care When Buying Mortgage Insurance
In 2018 the​ Financial Services Authority (FSA) began investigating the​ payment protection insurance sector and subsequently handed out fines to​ several well known firms on​ the​ high street for mis-selling payment protection products .​
Recommendations were made for selling the​ cover and some changes for the​ better have been seen,​ however recently the​ FSA handed out a​ fine not only to​ a​ firm,​ but also the​ Chief Executive for failing to​ follow the​ proper procedures when it​ came to​ selling mortgage insurance.
The company was found to​ have sold 2,​000 policies to​ consumers remortgaging while putting them at​ a​ high risk of​ being mis-sold their policy and were the​ first firm to​ receive not only a​ company fine but also where the​ Chief Executive had to​ put their hands in​ his own pocket.
However,​ the​ negative publicity that mortgage payment protection insurance (MPPI) has attracted does not do the​ product justice .​
Mortgage insurance,​ when taken out correctly and understood after being given the​ key facts and exclusions,​ can be an​ excellent safety net on​ which you​ can fall if​ you​ should lose your income .​
If you​ were to​ be out of​ work after suffering from an​ accident,​ sickness or​ through such as​ unemployment then you​ could be left struggling to​ find the​ money to​ repay your mortgage .​
If you​ cannot keep up with your mortgage repayments then you​ risk having your home repossessed as​ the​ State cannot be relied upon to​ give you​ the​ money needed.
A mortgage insurance policy could begin to​ give you​ a​ tax free income which would start once you​ had been out of​ work for a​ set period of​ time which can be anywhere between 31 and 90 days of​ being continually out of​ work .​
Once the​ cover had commenced payout then it​ would continue to​ do so for between 12 and 24 months depending on​ the​ provider .​
However the​ cover is​ not suitable for all circumstances and you​ have to​ make sure that is​ suitable for yours before taking out the​ cover.
Exclusions which are common to​ all policies include if​ you​ are retired,​ self-employed,​ if​ you​ suffer from an​ ongoing medical condition or​ you​ only work part time .​
Providers can add additional exclusions so when looking for your cover take these into consideration along with looking for the​ cheapest quotes for the​ cover.
In the​ past mortgage insurance has been known to​ be an​ expensive addition to​ an​ already over stretched budget and it​ can when taken out alongside the​ mortgage .​
Buying cover from an​ independent specialist provider can save you​ a​ lot of​ money .​
Along with this as​ they are more ethical you​ can be sure that they will provide the​ key facts of​ the​ policy and make sure the​ consumer understands the​ exclusions before buying and so can make an​ informed decision regarding the​ policy .​
a​ policy can work in​ the​ way it​ is​ intended to​ do but you​ have to​ know what you​ are buying and stick with a​ specialist provider if​ you​ want to​ be sure you​ have a​ quality product which is​ backed by experience in​ selling payment protection.

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