Take Out Your Mortgage Insurance Independently With A Standalone Specialist

Take Out Your Mortgage Insurance Independently With a​ Standalone Specialist
Despite the​ bad name that mortgage insurance has earned itself over the​ last few years it​ can still be a​ very worthwhile product to​ have to​ fall back on​ if​ you​ should find yourself out of​ work after suffering from an​ accident,​ an​ illness or​ if​ you​ should be made unemployed by losing your job through such as​ redundancy.
Providing you​ understand the​ product and what it​ is​ capable of​ doing then it​ can give you​ security by providing an​ income each month after you​ have been out of​ work for a​ set period of​ time .​
The time you​ have to​ wait before making a​ claim varies from provider to​ provider,​ and can be anything between the​ 31st day and 90th day of​ being out of​ work continually .​
The cover would then carry on​ paying out a​ tax free income with which you​ can continue to​ repay your mortgage each month without worry for anywhere between 12 and 24 months of​ being out of​ work,​ dependent on​ the​ provider.
The main reasons why a​ policy might not be suitable for your needs are the​ exclusions and while these can differ between policies there are some which are common to​ the​ majority of​ mortgage payment protection insurance plans .​
If you​ are only working part time then it​ might not be suitable for your circumstances,​ if​ you​ are of​ retirement age,​ suffer an​ illness at​ the​ time of​ taking out the​ policy or​ only work part time then it​ probably isn’t the​ right product for your circumstances .​
Of course these are only the​ most common and it​ is​ essential that you​ read the​ small print of​ any policy you​ are considering taking out before signing on​ the​ dotted line .​
It is​ the​ exclusions in​ a​ mortgage insurance policy and the​ lack of​ knowledge about them that has helped to​ give the​ product a​ bad name,​ although you​ should remember that it​ is​ the​ selling techniques and lack of​ mentioning the​ exclusions at​ the​ time of​ selling that’s the​ problem and not the​ product itself .​
When bought with understanding it​ can give you​ a​ safety net on​ which to​ fall and do the​ job its intended to​ do,​ but it​ has to​ be explained properly to​ the​ consumer .​
In 2018 problems arose for the​ sector after it​ was found that there had been wide spread mis-selling of​ payment protection products and this led to​ the​ Financial Services Authority handing out fines to​ several major high street names,​ the​ most of​ which was a​ mortgage firm .​
The mis-selling ranged from adding cover on​ at​ the​ time of​ taking out the​ loan or​ mortgage,​ failing to​ tell the​ consumer how much the​ cover would cost them in​ total,​ failing to​ mention the​ exclusions which meant the​ consumer couldn’t decide if​ the​ product was suitable for their needs and charging high premiums for the​ cover .​
The sector is​ currently under review by the​ Competition Commission and the​ results are expected in​ February 2009,​ meanwhile it​ is​ also still under the​ watchful eye of​ the​ Financial Services Authority and although some changes for the​ better have been seen,​ the​ recent review showed that many firms are still not up to​ scratch when it​ comes to​ selling techniques in​ mortgage insurance .​
In March 2008 there is​ going to​ be the​ introduction of​ comparison table which will make choosing a​ policy much easier based on​ a​ series of​ questions the​ consumer will be able to​ make sure the​ products are suitable and they will know how much the​ cover will cost and what the​ exclusions are .​
Until then it​ is​ essential that you​ do all you​ can to​ understand what you​ are buying and if​ it​ will be suitable for your circumstances.
For now if​ you​ want the​ peace of​ mind that you​ would have the​ money each month to​ make sure you​ keep the​ roof over your head then stick with a​ standalone specialist provider for your mortgage insurance .​
Not only will you​ get all the​ vital information needed to​ make an​ informed decision over the​ suitability but you​ will also get the​ cheapest premiums available.

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