Mortgage Payment Protection
Family is important; that’s why it’s best to get expert advice to help protect what matters, when it matters!
What is it?
A Mortgage Payment Protection plan is designed to ensure that you are able to continue to make your mortgage (and other related expenditure) payments in the event of accident, sickness or unemployment. It is a type of Accident, Sickness and Unemployment cover or ASU. These plans usually pay benefits for up to two years however, if you are seeking a plan that pays for a longer period, then Income Protection Insurance is generally more suitable, although generally cover for unemployment may not be available on this basis.
It’s worth noting that there is currently no legal requirement to have such cover and potential mis-selling of these products has generated much interest from the media and the industry regulator in recent years. However, this doesn't mean that they are not right for some people and can provide valuable protection in the right circumstances.
Who is it for?
This type of plan is designed for those who are worried about being able to continue their mortgage payments in the event of losing income due to accident, sickness or unemployment.
It is extremely important that you take financial advice before taking out this type of plan as they are not always the best nor cheapest option.
The average monthly cost for an individual is £3.30 per £100 of benefit (Based on a 37 year old non-smoker, applying for accident, sickness and unemployment cover, with the benefit deferred for 30 days and payable for a period of 12 months). Payment protection insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income.
For impartial information about insurance please visit the website at:. You are now leaving David Tonge Financial Services when the link to Money Advice is pressed. Please note that neither David Tonge Financial Services or Pink Home Loans are responsible for the accuracy of the information contained within the linked site accessible from this page.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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