Increasing redundancies could see mortgage payment protection insurance providers becoming more selective in who they were willing to cover, Highclere Financial Services has warned. Alan Lakey says with the onset of a recession some consumers could find themselves struggling to find MPPI providers due to the sector they are employed in: "There are a number of companies that cherry pick. They choose what occupation they suddenly do not want as soon as there is a sniff of redundancies. Some industries will be hit harder than others during rising unemployment such as the construction and financial industries. What is likely to happen is if for example someone says I am a banker, would they be covered? There will be some companies that simply will not want to cover them."
He calls for insurers to be more up front about who they will or will not cover rather than finding out about it after an application has been submitted.
Income protection insurance: News update: November 2008