Consider Protecting Your Mortgage With Mortgage Cover
by: Simon Burgess
When taken out correctly mortgage cover can be a real lifeline if the worst happens and you find yourself unable to work. However, if taken out without considering the terms and conditions and in particular the exclusions, then a policy could be nothing but a waste of money. It is essential that before you sign on the dotted line and commit to a policy, you make sure that the exclusions would not stop you from making a claim. If you are self-employed, retired, only work on a part-time basis or suffer from an ongoing illness you need to look very carefully at the conditions. A pre-existing medical condition is excluded but if you have not suffered from it within the past two years a policy could work in your favour. If you are self-employed and have to stop trading through no fault of your own then a policy could also protect you. Providers can add in other exclusions, so comparing the policies’ small print along with the quotes for premiums is essential. Protecting your mortgage repayments by some means is essential, considering mortgages are usually large loans taken over many years. At any time during the period of your mortgage you could find yourself unable to work due to getting ill, having an accident or through unemployment. If the worst happened and you were unable to work you would have to find the money to continue making your repayments, otherwise you could risk losing your home to repossession. Any savings you had could soon disappear and depending on the state for help could be futile. While help is available from the state you must fit strict criteria to get any support. Conditions which could stop you from receiving help include having savings of over £8,000 and having a partner in full-time employment. If you do qualify and you took your mortgage after October 1995 then you would not get help until after nine months had passed. Even then, the financial support you would receive would only go towards the inter! est on your mortgage. When you have mortgage protection, however, you don’t need to panic about your repayments if you find yourself unable to work. A policy would begin to pay out between the 30th and 90th day of you not working. It would then provide you with a tax-free income for one to two years, depending on the provider. All the conditions of the policy, including the time frames, are set out in the key facts of the policy and will be provided by a specialist provider before you take out the cover. The premiums associated with mortgage insurance will vary depending on which provider you go with. For example, mortgage protection is often offered alongside borrowing, but in the majority of cases this can cost up to 40% more than had you got a quote from a standalone provider. Mortgage cover should be considered carefully and taking the advice that only a specialist will offer is imperative if you expect the policy to work in the way it was intended. The mis-selling that has been associated with payment protection products has occurred through a lack of understanding. In March this is expected to change and cover will become more transparent with the introduction of comparison tables. These will explain the exclusions and make the consumer aware of their existence, and will also show how much in total a policy would cost. They will also help consumers to choose which type of cover might be best suited to their circumstances.
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.
Thursday, July 17, 2008
Ensure loan Payment
Ensure Loan Payment Protection Insurance Is Not Included With The Loan
by: Simon Burgess
While you should certainly consider taking out loan payment protection insurance, because it can be a valuable asset, be careful to avoid taking out a policy with the same company that provides your loan. Sometimes high street lenders add on the protection policy without asking the individual if they want or need the cover. Taking a policy this way not only adds enormous expense to the cost of the loan, but can result in you wasting money on a useless policy that would not pay out should you claim. High street lenders are known to charge premiums that can almost double the cost of a cheap loan. As well as adding the total cost of a policy onto the amount you are borrowing, they then top it off and add interest onto the total amount. Those lenders who try to persuade the borrower that the loan relies on taking out loan payment insurance protection are not being truthful. Some might ask that you do protect the amount you are borrowing, but you do not have to take the payment insurance with the loan provider. You can choose to shop around with a specialist provider and compare cheaper quotes. An independent provider could save you up to 80% in comparison with a high street lender. At the same time a standalone provider can offer all the advice you need to make sure you know the product is suitable for your circumstances. For example, you have to watch out for exclusions such as being of retirement age, suffering from an ongoing illness, only being in part-time work or being self-employed. These are common exclusions but there are exceptions. For instance, those who are self-employed could still be eligible to take out a policy if they have to cease trading through no fault of their own. And if you have a pre-existing medical condition but it has not resurfaced within the last two years then a policy could be suitable. Loan protection cover would begin to provide the policy holder with a tax-free income once they have been out of work for a defined period of time. The exact time period depends on the provider but is usually between day 30 to 90 of being continually unable to work. You would then have peace of mind for between 12 to 24 months, as indicated in the key facts of the cover. You also have to be very wary when taking out a loan online. Loan payment protection insurance can also be added in this way. A recent survey by a popular watchdog revealed that out of 41 quotes for loans, 24 of these had included the insurance. The majority of them also gave separate quotes for both with and without insurance. When applying for your quote online very often you have to un-tick a box yourself or click to a different place if you do not want insurance along with the loan, which is often confusing. However, some lenders have now agreed to change the pre-ticked box method. Always make sure you read the FAQs page when applying for a loan online so that you know whether protection is being included in the cost of the loan.
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.
by: Simon Burgess
While you should certainly consider taking out loan payment protection insurance, because it can be a valuable asset, be careful to avoid taking out a policy with the same company that provides your loan. Sometimes high street lenders add on the protection policy without asking the individual if they want or need the cover. Taking a policy this way not only adds enormous expense to the cost of the loan, but can result in you wasting money on a useless policy that would not pay out should you claim. High street lenders are known to charge premiums that can almost double the cost of a cheap loan. As well as adding the total cost of a policy onto the amount you are borrowing, they then top it off and add interest onto the total amount. Those lenders who try to persuade the borrower that the loan relies on taking out loan payment insurance protection are not being truthful. Some might ask that you do protect the amount you are borrowing, but you do not have to take the payment insurance with the loan provider. You can choose to shop around with a specialist provider and compare cheaper quotes. An independent provider could save you up to 80% in comparison with a high street lender. At the same time a standalone provider can offer all the advice you need to make sure you know the product is suitable for your circumstances. For example, you have to watch out for exclusions such as being of retirement age, suffering from an ongoing illness, only being in part-time work or being self-employed. These are common exclusions but there are exceptions. For instance, those who are self-employed could still be eligible to take out a policy if they have to cease trading through no fault of their own. And if you have a pre-existing medical condition but it has not resurfaced within the last two years then a policy could be suitable. Loan protection cover would begin to provide the policy holder with a tax-free income once they have been out of work for a defined period of time. The exact time period depends on the provider but is usually between day 30 to 90 of being continually unable to work. You would then have peace of mind for between 12 to 24 months, as indicated in the key facts of the cover. You also have to be very wary when taking out a loan online. Loan payment protection insurance can also be added in this way. A recent survey by a popular watchdog revealed that out of 41 quotes for loans, 24 of these had included the insurance. The majority of them also gave separate quotes for both with and without insurance. When applying for your quote online very often you have to un-tick a box yourself or click to a different place if you do not want insurance along with the loan, which is often confusing. However, some lenders have now agreed to change the pre-ticked box method. Always make sure you read the FAQs page when applying for a loan online so that you know whether protection is being included in the cost of the loan.
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.
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