Check In For Mortgage Cover Now
With the threat of redundancy growing in the UK, insurers are making life harder, especially for those in jobs affected by the credit crisis. It is worth checking your payment protection position now.
Insurance companies are beginning to get tough when offering unemployment insurance as fears of redundancies grow.
Estate agents and City banking personnel are finding it particularly difficult to find such insurance as they have been identified as sectors made vulnerable by the credit crunch.
Payment Protection Insurance (PPI) covers outgoings if you are made redundant, have an accident or become ill so you cannot work.
Insurers have advised brokers to avoid professions connected to the credit crisis.
However, all professions should still be able to get mortgage payment protection insurance (MPPI) from the company who offers the loan, as credit checks should satisfy the insurance company that redundancy is not imminent.
However, anyone in a vulnerable profession with a mortgage who is looking for new MPPI may struggle to access the cheapest deals. MPPI usually offers to pay your monthly mortgage payments for six to 24 months if you cannot make the repayments for similar reasons.
Sadly, if you do take out payment protection insurance, you are not guaranteed of getting a payout should the worst happen, as most plans have a 90-day exclusion period. Quite rightly, this is to stop people who get a sniff that they might be about to made redundant taking out protection, so it is three months before a policy will pay out.
Some insurers offering PPI have increased their premiums as problems with redundancy have begun to rear their head in recent weeks. Some have almost doubled the premium.
Generally PPI policies are under monthly review, which means that an insurer can increase premiums with 30 days’ notice, as long as this was made clear in the original documentation.
With unemployment on the increase, it is worth exploring the possibilities of PPI. Shop around, read the small print and act now - before it’s too late.
