Mortgage Payment Protection Insurance Provides Home Security

By Simon Lance Burgess

There are a few different types of insurance protection for consumers looking to protect themselves against missed income from the loss of a job due to redundancy, illness, or accident. The basic type is usually either mortgage or loan payment protection insurance or a salary income payment protection plan. Brits must examine their own financial situation and needs, as well as the unique benefits of different policy types, when deciding which coverage is right for them.

Although many of the benefits are similar, the basic difference between mortgage payment protection insurance and salary protection coverage is that mortgage coverage provides relief for those needing to meet monthly mortgage payment demands. Income protection, however, is intended to help offset some of the lost income that people rely on to meet basic budgetary requirements from month to month.

Typically, mortgage payment protection insurance policies offer a higher payout percentage, based on the covered person's normal monthly income. A mortgage cover, for instance, may allow coverage up to 65 per cent of income, while an income protection plan may only allow coverage of 50 per cent of the lost income. This means, of course, that premium costs are higher for the mortgage protection, or the higher payment protection policies.

Consumers need to keep in mind that payment protection policies are short-term in nature. Often confused with long-term income protection insurance, payment protection insurance is short-term, typically providing 12 to 24 months of monthly payments. Payments begin thirty to ninety days after a covered event, which must occur for the coverage benefits to kick in.

The payment protection insurance (PPI) industry has come under heavy scrutiny. It was targeted in 2005 by Citizen's Advice, a consumer group, for mis-selling practices and questionable sales techniques used by some leading banks and lenders and is now in the hands of the Competition Commission.

Many providers have been charged with selling policies to customers who are ineligible to receive payout benefits, such as part time employees and retired people. Others believe that, while not necessarily illegal, providers that have packaged payment protection plans with mortgages, credit cards, or other loans, have unethically deceived consumers. Institutional providers generally offer premiums 40-80 per cent greater than can be attained from more reputable insurance brokers or specialists. They also tend to have a greater focus on lining customers up with the appropriate protection. For large institutions, payment protection is often considered simply an add-on product.

Consumers can put themselves in the best position by knowing the right questions to ask when looking at mortgage payment protection insurance products. They should avoid feeling pressured to by from mortgagers or credit card companies, but should look to brokers or specialists to learn about plans and explore benefits and terms of each. In spite of attempts by regulators to more thoroughly protect customers, there will always be some unscrupulous providers looking to take advantage of the unknowing consumer.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of mortgage payment protection insurance.

Mortgage Payment Protection Cover Could Save Your Home

By Simon Lance Burgess

Brits need to become more aware of an insurance protection that can help them keep up with monthly mortgage payments and other obligations, in the event of job loss. With high foreclosures and delinquency projected by some for the 2008 housing and mortgage market, it is important that people find opportunities to protect themselves when possible. Mortgage payment protection cover is an insurance product that is relatively low cost, but is often overlooked, or misunderstood by Brits.

The main reason many are unfamiliar with the protection and its benefits is that common providers of the insurance, large banks and lender institutions, are somewhat deceptive in their sales practices. They sometimes package the insurance with new mortgages or credit cards, and often give the impression to borrowers or customers that the insurance is a required or necessary part of the purchase. Most importantly, they do not let customers know that there is another option for them.

Insurance specialists or brokers are a great resource for customers looking for mortgage payment protection cover. They are generally more knowledgeable about the benefits, terms, and options available from the protection. They are also more likely to be concerned with the best interests of the customer as it relates to this particular cover.

Surprisingly, many Brits are not aware even when they have mortgage payment protection cover, or if they are, they do not know what its benefits are. This relates somewhat to the packaging method used by the larger institutions to sell the mortgage protection insurance. They often do not mention the coverage is added to the mortgage or loan, in spite of its high premium costs. When they do, they often imply that it is required to be purchased as part of the other loan product.

Mortgage protection is one of three basic payment protection insurance products available to full time employees. Retirees and part time employees are not eligible to receive payment benefits, although some institutions mis-sell the coverage anyway to these groups. The other short-term protection options are for loan and salary protection. Either option provides a monthly payment based on a predetermined percentage of normal income. Payments run from 12 to 24 months and begin 30 to 90 days following a covered event.

In February of 2009, the Competition Commission is expected to release the results of an investigation into the controversial sales practices some insurers have engaged in within the payment protection insurance industry. The results should lead to more protection for consumers, while the current business environment is more advantageous for sellers of the insurance.

Mortgage payment protection cover is a great opportunity for home owners and heads of households to provider for the financial well-being of families in the event of job loss. Brits cannot rely on State-based aid to sustain them. They must look to protect themselves. Insurance brokers typically offer the payment protection plans for 40 to 80 per cent less than institutional providers. They are also experts in understanding the needs of consumers and matching those needs with the right coverage and benefits.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of mortgage payment protection cover.

Mortgage Payment Insurance Covers Involuntary Redundancy

By Simon Lance Burgess

In the event of involuntary redundancy, illness, or accident, leading to a loss of income, Brits can rely on savings, the State, or low cost mortgage payment insurance from a broker or insurance specialist. For those that do not have savings to cover monthly mortgage payments, and understand relying on the State might be a lost cause, mortgage payment coverage is a practical option. The problem is that most consumers either are unaware of the benefit of buying the insurance from a specialist, or already do buy the insurance, at high premiums, without even realizing it.

Mortgage payment insurance is one of three basic types of payment protection insurance (PPI), the others being loan and salary protection covers. There are some slight differences in benefits and terms from one provider and one product to the next, but the general concept of the product is universally the same. The insurance provides monthly income payments to the insured, which begin from 30 to 90 days following a covered event. Some covers are backdated to the first day of protection.

This short-term insurance protection is sometime confused with longer-term income protection, as they are often known by similar names. The difference is that mortgage payment insurance payouts are intended to provide a short term payment period, typically 12 to 24 months, to help the insured get through a short stint of unemployment caused by one of the covered events. Income protection is more of a long-term payment plan.

The difference between the three coverage types, mortgage, loan and salary, is that mortgage usually has a higher allowable payout percentage, at a higher premium, of course. Payout for mortgage coverage is often up to 65 to 70 per cent of normal monthly income, while salary protection is more like 50 per cent.

Unfortunately, many Brits are so unfamiliar with the insurance that some have the protection but do not know it. Some know they have it, but do not realize its benefits or that there may be more affordable premium options and better service available. The Competition Commission is currently in the midst of a major investigation with results set to be announced in February 2009. Their research could lead to stronger regulations for providers and better consumer protection.

Many banks and large lenders package the insurance with other products in a manner that is deceptive or pushy for the consumer. Consumers need to know that there are stand alone brokers who specialize in insurance and are more knowledgeable about plans that are right for particular consumers. They also have options that are commonly 40 to 80 per cent lower than what institutions offer.

It is important that consumers go into any loan or finance purchase with their eyes open. Brits should always read the fine print to be sure products and insurance products are not thrown into their loans. Mortgage payment insurance is great when it is purchased at low cost from a reputable provider. It can be a rip-off when purchased from a less reputable provider not out for the interests of the customer.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of mortgage payment insurance.

Mortgage Payment Cover For Your Families Needs

By Simon Lance Burgess

Brits need to be aware that there are great opportunities for low cost insurance that can help provide for monthly mortgage payments in the event of a loss of income. Mortgage payment cover is one of three basic types of short-term income payment protection in the event of involuntary redundancy, illness, or accident. The other types include various forms of short-term loan and salary protection. All of these covers essentially provide monthly income benefits, based on a percentage of normal monthly income, for up to 12 to 24 months of unemployment caused by a triggering event.

Involuntary redundancy, which is forced job loss, as well as illness and accident, can leave Brits wondering how to meet their monthly mortgage payment demands. Mortgage payment cover is a great peace of mind. It typically provides monthly payments up to 65 per cent or so of the normal covered person's income. Mortgage protection usually has a slightly higher premium, but also a higher allowable percentage of income allowed for coverage.

The sad truth, however, is that for many people covered by mortgage payment cover, the benefits are not even known, and the premium payments are often more than necessary. Surveys indicate many consumers covered by the insurance are either not aware they have it, or are not aware of its benefits, or their premium payments.

The reason behind the confusion is that many people carrying the protection bought it unknowingly, or naively, from a large bank or lender. These large institutions have a reputation for packaging the payment protection insurance (PPI) products with other primary loans, such as mortgages or credit cards. Some note the coverage and premiums in the fine print of the documents included with the primary finance product. Others explain the insurance to consumers, but do so in a way that puts pressure on them to buy, or suggests it is necessary to buy in combination with the other product.

The Office of Fair Trading (OFT) and Financial Services Authority (FSA) are even looking into potential mis-selling by some institutions. Consumer advocate groups, such as Citizen's Advice, have been very critical of the selling techniques used by some providers. They suggest that tactics are, at best, manipulative, and at worst, unethical or even illegal. Some insurers are selling the products to customers that could never receive benefits based on the full time employment requirements for pay out.

Customers need to look to specialists or insurance brokers for lower cost terms and more expertise about the products. Before consumers will do this, though, they must be informed about what the insurance is and the traditional sales methods used by banks. They need to be mindful of the product before looking for a mortgage or credit card. To get the low cost benefits of the product, including security and peace of mind, they need to seek out plans available through knowledgeable specialists.

Mortgage payment cover can be a great insurance product when purchased under the terms and conditions desired by the customer. This is why insurance brokers are more useful than the more questionable banks and lenders who sell the products. Customers need to educate themselves.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of mortgage payment cover.

Mortgage Insurance To Protect Your Most Valued Asset

By Simon Lance Burgess

It is believe that only about one in every four people has a mortgage insurance protection plan to cover their mortgage payments in the event of a short-term job loss. This is in spite of the fact that the State does not offer financial assistance to the unemployed for nine months, generally. Mortgage cover is a way for many to protect their homes by paying small monthly premiums to cover job losses due to involuntary redundancy, illness, or accident.

Part of the reason that a small percentage of home owners currently have protection is that many are uneducated on the benefits of the insurance, or are unfamiliar of how it works. Amazingly, even though a small percentage of home owners are covered, research also shows those that do have a plan are often not even aware of it, or do not understand its benefits.

A big reason for the lack of knowledge in the mortgage insurance industry is that for years, much of the plans sold were provided by large institutions, such as high street banks and lenders. Keeping a limit on the amount of information customers had about the products was a part of the strategy for several of these companies. Many banks either hid the coverage in the fine print of disclosures and sold it in combination with mortgages, personal loans, or credit cards, or used manipulation or pressure tactics.

As consumer advocate groups have been putting more and more pressure on the Financial Services Authority (FSA) and Office of Fair Trading (OFT) to produce more consumer friendly regulations, consumers have become more knowledgeable. Many consumer groups are attempting to educate consumers on their options. They want them to learn before buying loan products, what the common selling tactics are. It is also important for consumers to read the details and fine print of financial services or loan products before agreeing to terms or signing contracts.

Brokers and insurance specialists have a better reputation than the larger sellers. They generally offer premiums that are 40 to 80 per cent lower than those offered by most banks and lenders. This cost savings can make a huge impact on the value proposition for customers exploring their coverage options. Brokers are usually helpful at lining up customers with the best benefits available, and fewest coverage exclusions, based on the customers indicated needs and requests.

Mortgage insurance plans are part of the umbrella of income payment protection products. These are short-term insurance plans that typically offer monthly payments ranging from 12 to 24 months. Longer-term plans are usually covered under other product categories, including income protection products. Payment amounts vary depending on the customer's needs, budget, and allowable cover. Coverage limits are based on monthly mortgage amounts and normal incomes. Most mortgage payment protections offer full mortgage coverage with some extra money for additional expenses. Some plans are based on a percentage of monthly income. Obviously, the more coverage required by the customer, the higher the premium cost.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of mortgage insurance.

Loan Protection To Dig Out Of Debt

By Simon Lance Burgess

With average credit card debt and non-mortgage debt on the rise in the UK, it is more important than ever for Brits to consider the benefits of short-term loan protection. Loan cover is one of a few types of short-term insurance protection that falls under the umbrella of payment protection insurance (PPI). It helps injured, ill, or forcefully unemployed people meet their monthly debt obligations in lieu of an income. Since the State removed itself from supporting borrowers faced with unemployment, it is up to consumers to protect themselves and their assets.

Typical loan protection plans cover either 1500 pounds of debt each month, or 75 per cent of the individuals normal monthly income, whichever is lower. While this does not necessarily provide for all of a person's monthly living needs, most can make up the difference from supplementary income, savings, or other insurance plans provided through their employer.

Loan protection is not designed to provide long-term benefits. Its advantages in terms of value are much greater for one to two year plans. Premiums rates can be as low as a few pounds per each hundred pounds of cover. Independent brokers usually offer premium rates that are 40 to 80 per cent lower than those offered by traditional institutional providers. Brokers also maintain a better reputation for ethical and fair business practices, and customer service and support.

In 2005, Citizen's Advice, a leading British consumer advocate group, submitted a super complaint to the Office of Fair Trading in support of many consumers. The complaints alleged several questionable business practices were being used by members of the PPI industry. Specifically, many high street banks and lenders were charged with selling products to customers that were ineligible to receive payouts from the plans. Retirees and part time employees do not receive protection under payment protection insurance as it is for full time employees that become unemployed.

Along with these unethical practices, others suggest that these institutions are not maintaining the interests of consumers. They often package the loan cover with mortgage or other loan products in order to enhance customer premiums. They typically charge much higher premium rates than independent brokers can provide.

The key for consumers is to become educated on their needs and to look to specialists for the most important cover. Recent surveys show that the typical Brit is either unfamiliar with the benefits of the protection, or even worse, some covered individuals do not even know that they are covered by the protection. People must take charge of their own situations and not rely on the State, or large providers to meet them.

Loan protection can prevent horrible financial burdens for people who do not have adequate savings. Ideally, one would never have to receive the benefits of protection. However, for a small premium rate charge by a broker, it is worth considering protecting one's financial security and the well-being of the household. This is perhaps one of the greatest investments an individual can make during his or her lifetime.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of loan protection.

Loan Protection Insurance For Broad Short-Term Cover

By Simon Lance Burgess

Within the payment protection insurance (PPI) industry, there is much similar and overlap between the three common types of coverage. Loan protection, mortgage protection, and income protection payment covers are all somewhat similar in terms of the benefits they provide. However, there are some definite advantages available from loan protection insurance that are unique compared to the other umbrella payment protection covers. Perhaps its strongest comparative advantage is that plans usually allow coverage up to 75 per cent of normal income, or 1500 pounds, which ever is lower. Mortgage protection and income payment plan covers are usually a bit lower.

Other advantages include that loan protection insurance typically includes a death benefit to make the coverage a bit broader. PPI products provide protection to covered people in the event of involuntary redundancy, illness, or accident. Long-term health plans generally make no mention of unemployment. The State also does not provide any or enough assistance for unemployment. Loan protection is intended to help covered people meet monthly debt demands and up to 25 per cent of other expenses. This is great financial security for Brits in a time of financial need.

Loan protection insurance also usually provides hospitalisation benefits and carer benefits. Home and auto debt, as well as personal loan and credit card debt can be overwhelming for employed people. Imagine the stress related to trying to meet monthly demands when unexpected unemployment occurs. Unfortunately, many people do not have adequate protection. Given that housing and mortgage markets are already headed for struggle in the coming years, it is especially important that people do what it takes to protect themselves from covered events.

Payouts for loan cover are monthly, for 12 to 24 months, depending on the plan, and begin from 30 to 90 days following the covered event. Again, the insurance is intended to provide short-term protection. It is a not designed to be a long-term solution. Insurance brokers are great resources in helping consumers find covers for both their long-term and short-term needs. Brokers have product knowledge and customer-friendly attitudes that are great features of their plans.

Consumers need to be cautious about approaching large banks and lenders for payment protection or loans. Premiums through these types of providers are usually at least twice as much as those offered by independent brokers. Additionally, these large institutions lack some of the people and product focuses that make brokers preferable. Consumer groups have spoken about deceptive practices and mis-selling techniques commonly used by high street banks and lenders. Consumers are much better off exploring protection options through a more reputable stand alone broker.

Loan protection insurance can prevent loss of home or car, or bankruptcy for covered individuals. Premiums through brokers are very affordable and there are some common discounts that can give them event greater value. Consumers need to protect themselves against major loss, and with just a few pounds in premiums each month, they can. Terms and conditions of coverage vary by product. This is why brokers come in handy.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of loan protection insurance.

Loan Protection Cover Is A Financial Necessity For Some Brits

By Simon Lance Burgess

Many Brits fail to take advantage one of the best deals in the insurance industry. Independent insurance brokers offer loan protection cover as part of their portfolio of payment protection insurance (PPI) products. Loan cover is a great short-term protection against involuntary redundancy, illness, or accident. Some plans even provide payments to survivors upon deaths. Several providers even offer the same premium rates for people of all ages. This is definitely a significant advantage compared with other types of traditional health insurance.

Although, loan protection cover offers great benefits when purchased from an insurance broker specialist, many fail to uncover the great low cost options independent providers have. Some consumers are unable to look at broker benefits because they are already stuck in coverage with other providers. Others simply do not understand the benefits of the insurance or how to get it less expensively.

Typically, loan protection cover can offer monthly payments up to 65 per cent of the normal monthly income for the covered individual. This is much higher than other PPI products. It is designed to help the insured meet monthly debt demands as well as some basic monthly expenses. There are limits on total cover amounts, but the products can mean the difference between keeping and losing a home for someone forced into unemployment. Involuntary redundancy benefits are a huge advantage of PPI products, as opposed to longer-term income protection.

Premium costs from independent brokers are usually about 40 to 80 per cent lower than high street banks and lenders traditionally offer. The institutional sellers often package their plans with other loan products, like mortgages or credit cards, in order to expand their customers' protection portfolios. This is considered deceptive and even unethical by some consumer groups. Customers can also save money through some specialists by getting joint accounts. Many brokers also offer the advantage of secured online quotes and enrolment processing. These are both great conveniences to consumers.

Brokers are also knowledgeable about the protection plans they offer. Some larger sellers are too busy with the multitude of financial products and services they manage to treat each product and each individual as a unique situation. Brokers, on the other hand, are very customer-focused, and specialized brokers typically offer services and support not available from larger sellers. It is important that prospects protect their own self interests when looking to a provider.

Brits cannot rely on the State for unemployment support. The State has reduced assistance to the point that very few people qualify for any assistance, and those that do must usually wait nine months or so before receiving payout. Payment protection products usually begin payments 30 to 60 days after the date of enrolment. Loan protection cover is paid monthly over the course of 12 to 24 months with most plans. It affords covered people the opportunity to focus on their health and self-care instead of stressing over financial concerns or insurance hassles. This is the peace of mind that insurance is intended to provide.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of loan protection cover.

Loan Payment Protection Is A Great Unknown

By Simon Lance Burgess

Loan payment protection is a short-term insurance cover that pays up to 75 per cent of normal monthly income for covered individuals. It is part of an umbrella of products known as payment protection insurance (PPI). Other related products include mortgage payment protection and income payment protection. Loan cover offers the highest allowable coverage, based on a percentage of income.

Loan payment cover is designed to provide the greatest premium to benefits ratio for short-term plans, therefore, most plans offer payment periods of one to two years. Longer-term protection is usually obtained through worked related health insurance or income protection. Typically, loan payment protection is intended to cover 100 per cent of the insured's monthly debt obligations, and up to 25 per cent of additional expenses, with a maximum total payout.

Covered events which trigger benefits under the insurance include illness and accidents, which are also covered by income protection. It also covers involuntary redundancy, which is not available under income protection products. Another nice benefit of many loan cover products is a death benefit, which is typically not available through other PPI products. This means that a covered person does not only ensure their family's financial security while they are around, they can also help by covering their surviving family's short-term needs in the event of death.

Loan payment protection, like other PPI products, is become more familiar to many Brits. For some time, people misunderstood their short-term financial options in the event of job loss. Some mistakenly believed the State would support most of their monthly needs. Others did not consider their needs in the event of an accident or prolonged unemployment. Many consumers were prey to the questionable selling practices of large institutional banks and lenders. These providers developed a reputation for deceptive selling, and even mis-selling, as they sometimes sold the insurance to unprotected people.

As consumer groups became more aware of problems, they began voicing their concerns to the Office of Fair Trading (OFT), which has since lead to a full investing of the PPI industry by Competition Commission. The clamour over the questionable business practices at high street banks and lenders has helped lead to proper credit being given to more reputable insurance brokers who specialize in the products. Brokers can usually offer premiums that are 40 to 80 per cent lower than other providers, and their independent nature enables them to maintain a greater focus on their customers' needs and best interests.

Loan payment protection can help alleviate much of the stress that is already present from prolonged unemployment. People forced out of work must begin the tedious process of looking for another job. Accidents and illnesses can lead to stressful recovery periods and an inability to enjoy one's traditional lifestyle interests and activities. By having financial security, at least covered people have the peace of mind to know that they are not going to lose their car, or their home. They can focus on recovery and looking forward to a better work experience in the future.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of loan payment protection.

Loan Payment Protection Cover To Preserve Your Finances

By Simon Lance Burgess

The payment protection insurance (PPI) industry offers short-term protection products to Brits who want financial security in the event of unemployment due to involuntary redundancy, accident, or illness. Loan payment protection cover is one of the primary coverage types offered by industry providers. This is a short-term product, designed to allow individuals to meet their monthly debt obligations, for 12 to 24 months, if a covered event occurs.

While many large banks and lenders have been offering loan payment protection cover for some time, many Brits are recognizing the unique advantages of buying protection from insurance brokers who specialize in coverage. Perhaps the greatest advantage offered by brokers is their reputation for more honest business practices, including product expertise and customer focus. Banks and lenders have developed a negative reputation for high pressure sales techniques that has drawn the ire of consumer advocates and lead to ongoing investigations by the Financial Services Authority (FSA).

Not only has the heightened awareness helped many people avoid over priced plans from questionable institutions, but it has given more credibility to brokers and place more emphasis on consumer education. The insurance itself covers up to 75 per cent of the covered person's normal monthly income, in most cases. This makes loan protection the highest level of protection of the three common types of payment protection insurance. Coverage typically provides for full repayment of all monthly debt obligations with a 25 per cent add-on of other monthly expenses. This is, of course, within the maximum allowable coverage for a plan.

Many loan payment protection cover products also added a death benefit, which is unique in the PPI industry. This is a nice bonus and provides greater security to surviving family members. Many people protect their homes, cars, and other assets by buying the coverage for themselves.

The payment protection products should not be confused with longer-term income protection. Income protection provides payouts up to retirement, if necessary. The benefits of the payment protections are inherently wrapped in their short-term orientation. One of the best advantages of the PPI products is coverage for involuntary redundancy, which is not covered under the income protection products.

Consumers need to educate themselves on the advantages of the various insurance products. By approaching an insurance specialist, consumers can take their needs and situation, and have them matched to the best available products and rates. In fact, as many brokers are online, consumers can often submit online data and quickly get back quotes, or comparisons of various products and covers.

Loan payment protection cover is a very important insurance product for many. The State provides little financial assistance for the short-term unemployment needs of citizens. This means that people need to look out for their own needs and the needs of their families. It is important to find a reputable provider who has great product knowledge and a customer service orientation. This can make the difference between getting appropriate coverage at the best rate, or incomplete coverage at a high rate.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of loan payment protection cover.