Getting behind on your mortgage could mean that the lender would take steps to repossess your home. If you are unable to work or have been made redundant then this is the last thing you need to worry about. However providing you look into it, mortgage payment protection would allow you to continue meeting the repayments.

A policy can be taken out to safeguard against the possibility that you might be made unemployed by such as redundancy sometime in the future. It can also be taken out to protect against being unfit for work due to suffering an accident or illness or it can be taken out for all three. The cost of the premium that is charged will be reflected on this. Other factors that determine the cost, is how much your mortgage repayments are and your age.

Mortgage payment protection insurance (MPPI) needs to be considered, as relying on the State to hand out benefits or savings to fall back on could let you down. Savings could soon be depleted if you were to remain out of work or unfit for many months. With the State, help will be given only for the first £100,000 of the interest part of the mortgage. Even then, you would have to be eligible to claim and must be receiving income support. Having a live in partner in full time work, or savings over a certain amount would mean you would not be eligible. If your mortgage were taken after October 1995, you would also have to wait 9 months before you would begin to benefit.

Policies do differ depending on where you choose to get the quotes for your cover. The high street lenders will charge more for a policy than the standalone providers will. In some cases the difference can be quite a lot so shopping around is essential.

Mortgage payment protection does have a waiting period before you are able to claim. This is usually between day 30 and 90 of being out of work or unemployed. Once the cover has started to provide a tax-free income, it would continue to do so for between 12 and 24 months dependent on the provider. You have to read the key facts of the policy as the terms and conditions do vary from provider to provider. These should tell you how much your policy would cost and make the consumer aware of any exclusions that may be included.

There have been problems in the past with mis-selling. Problems started in 2005 when the Financial Services Authority investigated the sector at the same time as the Office of Fair Trading. It was found there many people had bought cover that they could never be able to claim on. Others were sold the insurance without actually being aware of the fact.

However, those who have lost faith in and do not give mortgage payment protection a second thought should remember it is not the products themselves that are to blame. Mis-selling occurred through ignorance at the time of selling. However, by shopping around and researching your options, you can be sure of getting a quality product.

simon burgess is managing director of the award-winning british insurance, a specialist provider of mortgage payment protection , income protection insurance and loan protection insurance.

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