It is essential that you check out UK mortgage protection insurance before you buy if you want to ensure that you have a policy to meet your needs and a quality product without paying over the odds for the cover. Historically, the high street lender will charge way over the odds for the cover when compared to the standalone specialist provider. Over the term of your mortgage this can cost you literally thousands of pounds.

UK mortgage protection insurance can help you to continue repaying your mortgage if you lose your income through becoming unemployed; or suffering from an accident or an illness which keeps you off work for any length of time. Cover will usually begin to payout after a set period of time which can be anywhere between the 31st day and the 90th day after the event and would then continue for between 12 and 24 months which should be ample time to get well or find alternative employment.

You do have to realise that there are exclusions in all policies that can stop you from making a claim. Exclusions that are typical to most mortgage payment protection insurance policies include if you are suffering from an ongoing illness at the time of taking out the cover, if you are self-employed, of retirement age or if you only work in a part time position. The exclusions should be mentioned at the time of taking out the policy but the high street lender can be lax here, however a standalone specialist provider tends to be more ethical – as payment protection insurance is their core business – and will always make this information available in plain English.

It is the lack of information that causes so many problems with the sector and the Financial Services highlighted this in 2005 when they began an investigation into the payment protection industry following a super complaint from the Citizens Advice to the Office of Fair Trading. Several high street names received fines for unsavoury sales practices.

However in March 2008 it is hoped that a big change for the better will occur when the Financial Services Authority introduces new comparison tables which will make buying the product easier for the consumer. The table should make the product more transparent by asking the consumer a series of questions which will then point out which payment protection product is the most suitable for their needs along with highlighting the fact that there are exclusions in the policy and how much the cover will cost in total. Up to this point these have all been serious failings when it comes to selling payment protection products which have left the consumer confused about what they have actually bought and if it is suitable for their needs.

For the time being if you want the safety net that UK mortgage protection insurance can give then buy the cover independently from a standalone specialist provider who will not only be able to offer the cheapest premiums for the cover but also give you the advice you need to ensure a policy is right for your needs.

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