How To Save Yourself Money On Mortgage Protection Insurance
Firstly, what is mortgage protection insurance and why would you
need it? Well mortgage protection insurance basically pays your
mortgage repayments if you become sick, have an accident or
become unemployed. Sometimes it can also cover related expenses
such as building insurance, but not always, so check the
mortgage protection insurance policy if you want to know if that
is covered too. Many people choose to buy their mortgage
protection insurance with their mortgage lender as this seems
convenient and logical, however many mortgage lenders charge
high prices for their mortgage protection insurance. A much
better option is to get a mortgage protection insurance policy
from a specialist provider as this is usually cheaper. Even if
you already have mortgage protection insurance from your
existing mortgage lender, you can still switch it to a
specialist provider and save money.
For those of you that are self-employed, another way to save
money on your mortgage protection insurance is to opt out of the
'unemployment' part of the cover as this would reduce the cost
of the policy which would most probably not pay out in this
situation anyway.
The price of mortgage protection insurance is based on the size
of your mortgage payment instead of the usual health, sex and
age risk factors. There are a few policies which are age related
and for those of you under 35 they would generally be cheaper
than mortgage insurance protection policies that are not age
related.
If you are thinking of switching your mortgage protection
insurance from one provider to another, please check the new
policy carefully as some policies have an initial exclusion
period where you cannot claim, which is usually 3 to 6 months,
in which case it's best not to switch as you don't want to be
uncovered for up to 6 months.
Also some mortgage protection insurance policies won't pay out
if you have a pre-existing medical condition or if it could be
predicted that you were to become unemployed at the time of
taking out the policy. If either of these are your current
circumstances then it's best not to switch.