Mortgage Payment Cover For Your Families Needs

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span                            payments up to 65 per cent or so
class="cap">Brits       of the normal covered person’s
need to be aware that there     income. Mortgage protection
are great opportunities for low       usually has a slightly higher
cost insurance that can help          premium, but also a higher
provide for monthly mortgage          allowable percentage of income
payments in the event of a loss       allowed for coverage.

of income. Mortgage payment

The sad truth, however, is
cover is one of three basic types     that for many people covered by
of short-term income payment          mortgage payment cover, the
protection in the event of            benefits are not even known, and
involuntary redundancy, illness,      the premium payments are often
or accident. The other types         more than necessary. Surveys
include various forms of              indicate many consumers covered
short-term loan and salary            by the insurance are either not
protection. All of these covers      aware they have it, or are not
essentially provide monthly           aware of its benefits, or their
income benefits, based on a           premium payments.

percentage of normal monthly

The reason behind the
income, for up to 12 to 24 months     confusion is that many people
of unemployment caused by a           carrying the protection bought it
triggering event.                     unknowingly, or naively, from a
Involuntary redundancy, which is      large bank or lender. These
forced job loss, as well as           large institutions have a
illness and accident, can leave       reputation for packaging the
Brits wondering how to meet their     payment protection insurance
monthly mortgage payment demands.     (PPI) products with other primary
Mortgage payment cover is a          loans, such as mortgages or
great peace of mind. It              credit cards. Some note the
typically provides monthly            coverage and premiums in the fine

print of the documents included       Before consumers will do this,
with the primary finance product.     though, they must be informed
Others explain the insurance to      about what the insurance is and
consumers, but do so in a way         the traditional sales methods
that puts pressure on them to         used by banks. They need to be
buy, or suggests it is necessary      mindful of the product before
to buy in combination with the        looking for a mortgage or credit
other product.

card. To get the low cost

The Office of Fair Trading         benefits of the product,
(OFT) and Financial Services          including security and peace of
Authority (FSA) are even looking      mind, they need to seek out plans
into potential mis-selling by         available through knowledgeable
some institutions. Consumer          specialists.

advocate groups, such as

Mortgage payment cover can be
Citizen’s Advice, have been very      a great insurance product when
critical of the selling               purchased under the terms and
techniques used by some               conditions desired by the
providers. They suggest that         customer. This is why insurance
tactics are, at best,                 brokers are more useful than the
manipulative, and at worst,           more questionable banks and
unethical or even illegal. Some      lenders who sell the products.
insurers are selling the products     Customers need to educate
to customers that could never         themselves.

receive benefits based on the gend>About the
full time employment requirements Authorfor pay out.

id="authorbio"

Customers need to look to          class="membersnoticewhite">Simon
specialists or insurance brokers      Burgess is Managing Director of
for lower cost terms and more         the award-winning expertise about the products.         href="http://www.britishinsurance

.com">British Insurance, a        insurance/mortgage-insurance.html
specialist provider of mortgage payment
href="http://www.britishinsurance     cover.