Mortgage protection cover UK policies can work

A mortgage protection cover UK policy can work and can do the job that its supposed to do but it is down to the consumer themselves to ensure that they do everything they possibly can to understand the ins and out of the cover and to realise that it isn’t suitable cover for everyone, as there are exclusions which could stop you from claiming.

A mortgage protection cover UK policy is an invaluable product, despite the bad reputation it has earned for itself during the last few years. However, in all fairness, you should understand that the product itself isn’t to blame but rather those that sell the protection. The majority of problems have stemmed from policies that have been sold alongside loans and mortgages at the time of taking out the mortgage; with the high street lender this has been a lack of information on the part of those selling the product. On the internet one of the biggest problems recently highlighted has been the use of pre ticked boxes which the consumer didn’t realise they had to un tick if they didn’t want the cover. This led to them unwittingly buying a policy that they may not have needed or may have been ineligible to claim on.

After an investigation by the Financial Services Authority (FSA) many online sellers of mortgage protection cover UK policies agreed to change the way they sell the insurance. Investigations in to the protection insurance industry began in 2005 after a Super Complaint by the Citizens Advice to the Office of Fair Trading. Subsequently, many well known financial organisations were fined for their sloppy sales practices and for not having the consumer’s best interests at heart.

A mortgage protection cover UK policy is a type of insurance that is taken out to safeguard against the possibility that you might become out of work after suffering from an accident, an illness or unemployment. Providing your circumstances are in line with the policy then it would pay out a fixed income each month which is tax free after you have been out of work, usually for 30 days or more. It would continue to provide you with this income to ensure that you wouldn’t be struggling to make your monthly mortgage repayments and so wouldn’t have to worry about losing your home due to repossession. The cover would continue to provide you with this income for up to 12 months and some providers give 24 months on their policies.

It is essential that you shop around as mortgage protection cover UK policies do vary greatly in the premiums that are charged as well as the quality of cover offered. Historically, the high street banks and lenders charge way over the odds for the cover with premiums often adding thousands more than they need to onto the total cost of the mortgage. The cheapest premiums can be found by going with a standalone provider. The standalone provider not only offers the cheapest premiums which saves you money but also will provide you with the essential information and key facts of the mortgage protection cover UK policy which ensures that you are able to make an informed decision before buying.