Mortgage Insurance Cover Is More Transparent When Bought Independently

One of the biggest reasons why mortgage insurance cover and related protection policies are hard to understand is the lack of information given at the time of selling. Mis-selling only occurs through ignorance of the product and not knowing what it can and cannot deliver. As long as the consumer has the information and key facts regarding a policy and has made sure it is suitable, it will protect their mortgage. Getting behind on your mortgage repayments puts you at high risk of being repossessed but with mortgage protection it does not have to be this way.

If you find that mortgage protection insurance is suitable for your circumstances, it can act as a safety net should you find yourself in a situation where you are unable to work. This can be due to an accident, illness or through unemployment caused by no fault of your own, for example redundancy. You pay a premium for your policy, which is decided at the outset and is based on your age and the amount of monthly mortgage repayments.

Mortgage payment protection would begin to provide the policy holder with a tax-free income after 30 to 90 days of being incapacitated or unemployed. Once the policy has begun to provide benefit it will, if necessary, continue to do so for between 12 to 24 months. The exact duration of the payout is stated in the terms and conditions, which hold vital information regarding the policy and therefore are a must-read before signing up.

All policies have certain exclusions, depending on the provider, and some exclusions are in the majority of cover. Those individuals who are retired, self-employed, suffer from an existing illness or who only work on a part-time basis will have to go over terms and conditions very carefully to ensure they will be eligible for a payout. There are clauses in a policy aimed at specific exclusions; for instance, if you have not been bothered by the illness in the two-year period from taking on the cover then you would be eligible to claim. In addition, if you are self-employed and have ceased trading altogether through no fault of your own then you could be eligible for the cover. A specialist provider will make sure that you are able to read the terms and conditions in full, which enables you to make a more informed choice.

The cost of mortgage payment protection insurance varies drastically depending on where you choose to take it. At the time of borrowing the high street lender will usually offer protection and in some cases it can be added on without the consumer being aware. The quotes the majority of high street lenders give can cost as much as five times more than a quote from an independent provider. Some high street lenders have been known to work out how much protection for the mortgage would cost and then add it onto the amount of the loan, then add interest on top. A specialist, in contrast, will give you a monthly quote for just the insurance.

Mortgage insurance cover is confusing to the majority of individuals but with the help of an independent provider and the internet it does not have to be this way. There is a vast amount of information to be found on the websites of payment protection specialists and the consumer should take full advantage of the articles and FAQs.
About The Author
Simon Burgess is Managing Director of the award-winning British Insurance (http://www.britishinsurance.com), a specialist provider of low cost income payment protection insurance (PPI), mortgage payment protection insurance (MPPI) and loan payment protection insurance.

Mortgage Payment Insurance Can Protect Your Home From Repossession

If you should find yourself unable to work and lose your income then finding the money needed each month to continue making your mortgage repayments could be a struggle. In the worst case scenario the situation could lead to you getting behind on your loan and ultimately losing the roof over your head. Mortgage payment insurance can protect your home from repossession, providing you ensure that the policy is suitable for your needs.

There are certain exclusions that can habitually be found in a policy. Being retired or self-employed, suffering an ongoing illness or only working part time as opposed to full time can all mean you would not benefit from cover. However, this is just a guideline and the exclusions are not set in stone: all policies vary. For example, you could benefit from mortgage payment cover if the illness has not reoccurred during the last two years. And if you are self-employed and you find yourself having to cease trading through no fault of your own, then a policy could pay out. It is essential that you read the terms and conditions fully before taking on the cover.

Finding information on the exclusions in a policy can be hard. Often, very little information is given when buying the cover alongside borrowing from the high street lender. Also, sales techniques at high street lenders have been known to be poor, with staff having very little training in selling payment protection products. A better way to make sure you get your hands on the vital information needed is to choose to buy a policy independently. By going to a specialist provider of payment protection you can also get the cheapest quotes. This could mean you save up to 40% on your mortgage cover.

Quality cover from an ethical provider would give you a tax-free payout after being unable to work for between 30 to 90 continuous days. The income you gain from the policy would mean you can relax and not worry about money. This allows you to concentrate on getting well or to find another job.

Those individuals who assume the state would help in their time of need can find themselves unpleasantly surprised. You have to qualify for help from the state, and having savings of more than £8,000 would mean you were not entitled to receive anything. If your partner works full time this would also exclude you. In addition, if your mortgage was taken out after 1995 then you would have to wait for a period of nine months before you would see any money. Even when you started receiving benefit, it would only be for the interest part of your mortgage, and then for up to the first £100,000 only.

While mortgage payment insurance has a bad name along with the rest of the family of protection policies, it can be a worthwhile buy. The product itself has never been an issue; the problems lie with the way it has been sold. Buying from a specialist provider does away with the problems associated with poor selling because an ethical provider will give you the information needed to ensure a policy works for you.
About The Author Simon Burgess is Managing Director of the award-winning British Insurance (http://www.britishinsurance.com), a specialist provider of low cost income payment protection insurance (PPI), mortgage payment protection insurance (MPPI) and loan payment protection insurance.

Top 5 ways to save on car insurance

Car insurance is a type of cover that can be quite costly depending on your needs and circumstances, but this is a type of cover that is a legal requirement for drivers in the UK so no matter what the expense you have to get this cover if you wish to take your vehicle on the road. It is important to remember that there are ways and means of lowering your insurance premiums on car cover, however, so with a little thought and research you could save yourself a small fortune.

Below are some of the top ways in which you can save money on the cost of insurance cover:

1. Don't go for the first quote. Never assume that the first quote you get is going to be representative of all other quotes, as the cost of cover can vary widely from one provider to another. Make sure that you get at least three quotes from different providers before you make any decision – don’t feel tempted to rush into taking cover with the first insurance company that sends you details.

2. Remember that price comparison sites may not cover all providers. Many people have started to use price comparison sites to find their insurance cover, but you should bear in mind that these sites only cover a portion of the market and not all providers are on their databases. You should therefore be mindful that there may be a cheaper and more suitable policy available that is not on the price comparison site, so it may be worth checking individual providers to get your price down further.

3. Go for the most appropriate level of cover. If you have a new or expensive vehicle then you should opt for the top level of cover, which is fully comp. However, if you have an old car that has a low value then you can get away with taking out a lower level of cover, which will enable you to keep the cost of cover down whilst still fulfilling the legal requirement of having insurance.

4. Increase your excess. The amount of excess that you choose on your policy will make a difference to your premiums. If you choose to have a higher level of excess on your policy you can knock down your premiums significantly in some cases – just make sure that you do have enough money put aside to cover the excess in case you do need to make a claim.

5. Take the pass plus test if you have recently passed. New and younger drivers often find the cost of cover crippling. However, you can save a considerable amount on the cost of cover if you take the advances pass plus test after passing your standard test, with some insurers offering up to 35% off if you have passed this advanced course.

About The Author - David Lynes Loans4 provide homeowner loan solutions for homeowners. Please visit http://www.loans4.co.uk for the latest finance related news.