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.

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Having to find the money each month to continue meeting your mortgage repayments if you lose your income would be a great struggle. While you could turn to savings to support the outgoings, these could very soon run dry. Relying on the State could also leave you stranded. Considering mortgage payment protection cover is a far better way.

The State can give you help but only for the first £100,000 of the interest part of the mortgage. To be able to benefit from this you also have to qualify. You would have to be eligible to claim income support and not have a partner in full time employment living with you. If you had taken out the mortgage after October 1995 then you would have to wait for up to 9 months before you would see any help.

Mortgage payment protection can be taken out to insure against the individual being unable to work, a mortgage payment protection policy can be taken for accident and sickness only or for unemployment only due to such as redundancy. You can also choose to protect against all three and the premium for the policy would be based on this, along with your age and how much your mortgage repayments are.

There is a waiting period before the cover would begin to payout and this would depend on the terms set out by the provider. These must be read so that you understand what the mortgage payment protection policy entails and you can find any exclusions here which could apply to the mortgage payment protection cover. Usually mortgage payment protection cover would begin to provide benefit after being unemployed or unfit for work for between 30 and 90 days. The policy would then continue to provide the policyholder with financial security for your mortgage for between 12 and 24 months.

Mortgage payment protection cover has seen problems in the past with the investigation into the sector. This started in 2005 when the Office of Fair Trading received a super complaint from the Citizens Advice. It was found that in some cases, payment protection insurance (PPI) products had been mis-sold. The Financial Services Authority began their own investigation, and handed out fines to several well-known names on the high street.

However it is important to realise that it is not the actual products themselves that are to blame but those who sell them with no training. A standalone specialist provider will back up their mortgage payment protection cover with excellent advice and training. They will answer all questions regarding mortgage payment protection by way of a FAQs page and an ethical provider will give phone and e-mail contact.

While payment protection can be taken out alongside the borrowing with the high street lender, this is often the least preferred way. Historically, premiums are known to be higher than with the independent providers and often very little information is given regarding the contents of the cover. An absence of information given at the time of selling is what has lead to the majority of mis-selling.

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