Mortgage Protection Cover Still Complicated When It Comes To Buying
by: Simon Burgess
When it comes to buying mortgage protection cover it can still be hard to understand the exact nature of the cover, depending on where you buy your policy. Despite guidelines being set out by the Financial Services Authority many providers are still not giving adequate information at the time of selling the product. This is leaving many consumers unaware of the exclusions that exist in their cover, which can stop them from being eligible to claim. Some of the most frequently seen exclusions include if you only work part time, suffer from a pre-existing medical condition, are self-employed or have retired. However, these exclusions are not cut and dry. For example, if the individual has not had a re-occurrence of the illness within the last two years it could be worthwhile talking out a policy. With these exclusions in mind it is essential that you go over the terms and conditions of any cover you are thinking of taking. When taken out with your circumstances in mind mortgage insurance can give a monthly tax-free income. This money would allow you to continue meeting the repayments of the mortgage without having to worry about where to find the money. If you should become unable to work due to suffering an accident or illness this means you could concentrate on regaining your health and getting back to work. If you should be unfortunate enough to become unemployed, such as through redundancy, then you would have the time you need to search for a new job. The safest way to make sure you get access to the vital information needed to make sure a policy is suitable is to go with a specialist provider. Such a provider sells cover independently as opposed to alongside the mortgage. They know the products they sell and never put huge profits ahead of the consumer. Not only can you benefit from the knowledge they have, but the premiums for mortgage protection with a standalone provider will save you around 40% in comparison to some high street lenders. Policies do vary but usually they last for between 12 to 24 months once a claim is made, if you should remain unfit for work. There is a waiting period during which you have to be unable to work and this is anywhere from day 30 to 90. Premiums for the cover are based on how much your monthly mortgage is and your age when applying. An independent provider will ensure that you understand how much cover will cost in full and provide you with the key facts before you choose which policy is suitable. Some homeowners are under the impression that they would automatically be entitled to receive help from the state, but this is not the case. Individuals have to qualify to receive any benefit from the state. Those who have a partner who works in a full-time position or who have savings in the bank of more than £8,000 would not be entitled to receive state support. And those who do manage to qualify could have a long wait on their hands if they took their mortgage out after 1995. In fact, they would have to wait nine months and then they would only be able to claim for the interest part of their mortgage for up to £100,000. Having a back-up plan in case you should find yourself unable to keep up the repayments should be given some very serious consideration. If you get behind on your mortgage then you face repossession, which means you could lose your home. Mortgage protection cover is worthwhile considering as a safety net. You just have to make sure you understand what your policy can and cannot deliver, and determine if this meets your needs.
Thursday, July 17, 2008
Ensure Loans
Ensure Loan Insurance Is Suitable For Your Circumstances
by: Simon Burgess
Loan insurance can give you an income if you should become unable to work due to suffering an illness, accident or unemployment. Loan insurance can give tax-free payments that allow you to continue meeting your debt repayments without worry. This allows you to concentrate on getting better and getting back to work, or finding another job, with the security of knowing you do not have to struggle to afford your loan repayments each month. Loan payment protection can start to pay out once you have been unable to work for between 30 to 90 days. Once your policy has started providing you with the security of an income it then continues to do so for between one to two years. While this is usually enough time to get back to work, those who remain unable to work would have to consider how they would continue repaying their loan or credit card debt once the policy had stopped providing. Loan protection has been branded as nothing but a rip-off after the Office of Fair Trading revealed that mis-selling was widespread in 2005. But the majority of mis-selling occurs among the high street lenders that sell loan protection alongside a loan at the time of borrowing. Often very little information is given out to those buying cover, which means they cannot decide if they are eligible to claim. In fact, there are exclusions in the cover which mean it would be impossible for some people to claim. Those individuals who are self-employed, retired, suffering from a pre-existing medical condition or who do not work full time would have to check the terms and conditions very carefully. Those with an illness could only claim if they had not had a re-occurrence of the illness within two years prior to taking out a policy. One of the biggest problems associated with the loan cover is the selling of policies by those who have little or no experience in payment protection. The protection can be a very valuable asset to have, but the policy holder must be sure that they would be eligible for a payout. An independent provider of payment protection will offer advice and information before you take on the cover and this is the safest way to buy. Along with this, going to a standalone provider is also the cheapest possible way of taking out a policy. Quotes for the products vary considerably depending on where you choose to look. Loan insurance taken from a specialist can save you as much as 80% in comparison to the quotes high street lenders provide. One way that the high street lenders rip-off the consumer is by working out how much payment protection would cost and then adding it onto the cost of the loan before calculating the interest. It is though that this practice adds £4 billion to high street lenders’ profits each year. An ethical standalone specialist, on the other hand, will give you a quote based on the amount of your loan repayments each month and your age.
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
Loan insurance can give you an income if you should become unable to work due to suffering an illness, accident or unemployment. Loan insurance can give tax-free payments that allow you to continue meeting your debt repayments without worry. This allows you to concentrate on getting better and getting back to work, or finding another job, with the security of knowing you do not have to struggle to afford your loan repayments each month. Loan payment protection can start to pay out once you have been unable to work for between 30 to 90 days. Once your policy has started providing you with the security of an income it then continues to do so for between one to two years. While this is usually enough time to get back to work, those who remain unable to work would have to consider how they would continue repaying their loan or credit card debt once the policy had stopped providing. Loan protection has been branded as nothing but a rip-off after the Office of Fair Trading revealed that mis-selling was widespread in 2005. But the majority of mis-selling occurs among the high street lenders that sell loan protection alongside a loan at the time of borrowing. Often very little information is given out to those buying cover, which means they cannot decide if they are eligible to claim. In fact, there are exclusions in the cover which mean it would be impossible for some people to claim. Those individuals who are self-employed, retired, suffering from a pre-existing medical condition or who do not work full time would have to check the terms and conditions very carefully. Those with an illness could only claim if they had not had a re-occurrence of the illness within two years prior to taking out a policy. One of the biggest problems associated with the loan cover is the selling of policies by those who have little or no experience in payment protection. The protection can be a very valuable asset to have, but the policy holder must be sure that they would be eligible for a payout. An independent provider of payment protection will offer advice and information before you take on the cover and this is the safest way to buy. Along with this, going to a standalone provider is also the cheapest possible way of taking out a policy. Quotes for the products vary considerably depending on where you choose to look. Loan insurance taken from a specialist can save you as much as 80% in comparison to the quotes high street lenders provide. One way that the high street lenders rip-off the consumer is by working out how much payment protection would cost and then adding it onto the cost of the loan before calculating the interest. It is though that this practice adds £4 billion to high street lenders’ profits each year. An ethical standalone specialist, on the other hand, will give you a quote based on the amount of your loan repayments each month and your age.
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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