Shop around for mortgage payment protection insurance premiums

When it comes to getting the cheapest possible mortgage payment protection insurance premiums then it is essential that you shop around for several quotes with standalone providers. The premiums for mortgage insurance do vary considerably depending on where you choose to take the policy; the high street lender will often charge way over the odds for the cover when compared to a standalone provider.

Mortgage payment protection insurance (MPPI) is one of a family of protection insurance policies that cover your monthly mortgage repayments. In the case of mortgage payment protection insurance, the repayments it provides cover for are your mortgage. This essentially means that if you were to come out of work after suffering an accident, being ill or through unemployment of no fault of your own, you wouldn’t have to worry about losing the roof over your head.

Mortgage cover isn’t suitable for everyone though and you have to ensure that you would be able to make a claim on a policy if you should need too. A good policy would start to pay you a monthly tax free income each and every month for up to 12 months - in some cases 24 months - once you have been out of work for a pre-defined period of time – usually 30 days. Good policies will pay your claim back to day one.

Getting the lowest mortgage payment protection insurance premiums shouldn’t be your only concern when it comes to the product. Getting a quality product along with the advice needed in order for you to make a decision regarding the policy’s suitability is also imperative.

There are many exclusions within policies which could mean that you wouldn’t be able to claim. If you have a pre existing medical condition and were to come out of work due to this then you wouldn’t be able to claim on your policy. Those who are retired, self employed or only work part time would be ineligible to claim and many common medical problems are also excluded from a policy. While mortgage payment protection insurance can be a lifeline it isn’t suitable for all circumstances and you have to ensure it is suitable for yours.

Mortgage payment protection insurance premiums have been a cause for concern during a recent and still ongoing investigation by the Financial Services Authority, along with the lack of information given to the consumer at the time of purchase. Poor selling practises have led to several well known companies being fined by the Financial Services Authority (FSA) after it was found they didn’t give the necessary information to the consumer or ensured that the consumer would be eligible to claim on their policy. The sector is currently under review by the Competition Commission and their findings are expected to be made public early 2009.

While getting the cheapest mortgage payment protection insurance premiums is desirable they mean nothing if you wouldn’t be able to make a successful claim on your policy. When it comes to protecting the roof over your head a mortgage payment protection plan can do this, but only if you are sure that you meet the criteria defined in the policy before purchasing it.