What about your mortgage if you get made redundant?
Wednesday 10 December 2008
Because we are approaching a financial kalpa that is of apocalyptic proportions, it is of immense importance that people make sure they are protected against fiscal nasties. If the average person with a mortgage is made redundant then there is no hope for them, unless they have payment protection in place to ease them through such financial hardship.
The mortgage market is poised supine with a thermometer in its causally rictus puss, and as mortgage lenders resort to draconian measure, it is no longer a case of having 18 months grace before repossession orders proceed. Therefore you need to be perspicacious and be sure of the procurement of MPPI. (mortgage payment protection insurance)
If you are taking out a mortgage then the process of getting MPPI is relatively simple. The only thing to remember is that getting it with the mortgage lender that gives you the mortgage is going to work out more expensive than if you purchase the cover from an independent insurance company.
There have been recent changes in regards to social security and income support and all that sort of thing, and with this has come help for people with mortgages who are struggling in the scowled face of recession. With this paradigm shift it is important that people don’t get caught up in some sort of private insurance/state benefit bureaucracy standoff, and end up being completely mis-sold an MPPI policy.
The varying types of policies
There are different variants of payment protection; income protection (IP); MPPI; payment protection insurance (PPI). It is therefore important to be well versed in the nuances relative to each one.
If you have an MPPI or a PPI then the money from the policy is going to be paid directly to the mortgage lender or financial institution that the mortgage was procured with. Such benefits are not classed in the same sense as income would be, and therefore are not means-tested. IP is however treated like income, and therefore would be effected by state benefit-style red-tape.
It is down to the people within the insurance industry to gain knowledge in relation to any conflictions, and to pass this knowledge on to the consumer. It also helps if consumers make some effort to be aware of the ramifications of the policies that they are purchasing.