If you have a mortgage of loan, you may well have mortgage payment protection insurance. Most providers suggest very heavily that you ought to take it out. Some go so far as to automatically include the premium with the monthly repayment. At the time of taking it out, customers are often too scared of having an offer withdrawn to turn down the insurance.
A regular drip of surveys on the subject suggests that if you are currently paying for a mortgage payment protection policy to cover your mortgage against accident sickness and unemployment then the chances are that you are paying more than you need to. Many High Street lenders are charging unnecessarily high premiums for this cover on which they make a tidy profit.
Now, similar or better policies can often be obtained independently by shopping around. Another problem with bank policies are that they are for everyone. So if your employment situation is out of the ordinary in any way, they may be unsuitable.
Some, but not all, the insurers who underwrite the policies offered by banks and building societies, do not want to rock the boat by offering policies direct to customers too. To counter this, several specialist providers are emerging, often with new ideas and options. We will be adding such companies to the site very soon
An example of innovation comes from Compass Underwriting, who in conjunction with Assurant Solutions, is launching MortgageRewards.This web-based MPPI product rewards customer loyalty. MortgageRewards promises customers a two-month premium payment holiday for every complete 12 month period without a claim. This reward repeats every year for the life of the policy.
MortgageRewards is an age-rated monthly-premium accident, sickness and unemployment (ASU) policy that will be available very soon. There will be a range of additional options that allow more flexibility.
Mortgage payment protection insurance : News update: June 2006