Insurance Checker

A Quick Guide To Loan Protection Exclusions

loan protection has been in the news a lot recently as a result of consumer accusations that the providers of loan protection are simply ripping off consumers to profit rather than assessing what is in their best interests. This may sound like a wild claim until you are presented with the evidence.

The finance industry regulator the Financial Services Authority has in fact found that in some cases loan protection policies were being sold to individuals who could never benefit from them because they would not be eligible to claim should they find themselves out of work as a result of sickness or unemployment.

There are a variety of reasons why someone would be unable to benefit from or to claim on loan protection, and all of them are contained within the small print, or the terms and conditions. It is therefore important that a consumer reads this information before taking the loan protection out.

Although every individual policy will have its own set of exclusions, and they largely depend on the company, there are some generic ones that all loan protection policies have. The first is that you have to be between 18 and 64 to claim on the majority of them. Any older than that and you are no longer deemed to be of working age. Some do not include this condition now as a result of the act against age discrimination, but it is still worth looking for or asking about.

You also have to be working on a full time basis to be able to claim on loan protection. If you work less than sixteen hours a week or no longer work then you cannot claim. The whole idea behind loan protection is that it enables you to maintain repayments if your income is dramatically reduced. However, if you are not working to begin with or are not the main wage earner then it could be argued that your debts should not be affected.

Of course these are only two of the exclusions associated with the terms and conditions of loan protection, but already you should have an idea as to whether you qualify for it! Be sure to read all of the terms and conditions and take independent advice if necessary and you will not go far wrong!

Compare Loan Protection Cover

Individuals are sometimes totally unaware that they are able to take out loan protection cover from a standalone specialist provider. High street lenders do not make it know that the consumer has choices and they can shop around. This is due to them raking in huge profits that are thought to be around £4 billion a year.

By going to an independent specialist for your quote, you are able to knock hundreds of pounds off the cost in comparison to the quotes high street lenders offer. In some cases, protecting your loan repayments with the high street lender can boost up the cost of a cheap loan by almost half again.

You also have to be aware of high street lenders adding cover onto the cost of the borrowing without you realising. Some will do this and then calculate the interest of the loan on top of the borrowing and protection. The borrowing is not dependent on you taking a policy out with the loan. By shopping around with an independent provider, you will also have access to a wide range of information relating to payment protection. Learning as much about the product you are considering is essential before actually taking it out.

As a rule, loan protection cover would begin to provide the policyholder with a tax-free income should they lose their income after a defined period. The waiting period before commencement of the cover depends on the provider. This is usually between day 30 and 90 of continually being unfit or unemployed. Once the policy had commenced it would then continue to give benefit for between 12 months and 24 months. You should also check to make sure, if the provider would backdate the policy to the first day. Some do but others do not. This can be found in the key facts along with any exclusions that might apply.

Despite negative press that has surrounded payment protection cover and the related policies, it is still a worthwhile product. In 2005 an investigation began into the sector which revealed that polices had been mis-sold. This was brought to the attention of the Office of Fair Trading by the Citizens Advice. Following this, both the Office of Fair Trading and the Financial Services Authority investigated the sector. Fines were given to many well known names on the high street and the sector was referred to the Competition Commission. They are currently conducting an in-depth review of the protection insurance industry.

One of the changes for the better that will arise from this is the introduction of comparison tables. The tables will allow the consumer to choose the right type of policy for their needs. Loan protection cover protects the loan and credit card repayments. However, there is also income and mortgage protection available. The tables will also highlight the essential information regarding the policy. These can include the exclusions and how much a policy would cost.

It is important to remember that the actual products do work in the way they are designed. When it comes to mis-selling, it has been a lack of information given at the time of selling that has caused the majority of problems. Loan protection cover can be a valuable back up plan and faith should be restored in it.

An Introduction to Mortgage Protection Insurance

Purchasing a home is a major expense that requires a significant and long term financial commitment. When you initially apply for a mortgage, you are approved for loan funding based on your financial status at the time of application. Most people do not expect that their financial situations will get worse over time, but in some cases that is exactly what happens. Whether through the loss of employment or the death of a family member, it is an unfortunate fact that many people find themselves in situations that keep them from being able to keep up with their home loan payments.

Importance of mortgage protection insurance

For many families, making mortgage payments would become difficult or even impossible in the event of the death of one or more members of the household. Before investing in a home, it is important to stop and think about how the house payments could be made if a major source of household income were to become permanently unavailable as the result of an unanticipated death.

While no one wants to think that their family will ever face a worst case scenario, it’s necessary to make contingency plans for every possible situation. Mortgages are such a large expense that it is important to consider how one’s family would be able to avoid the threat of foreclosure, in addition to losing a loved one, if such a situation were to arise. Fortunately, it is possible to protect your family from having to face the possibility of such a situation by investing in mortgage protection insurance.

Simply put, mortgage protection insurance is a life insurance policy that will pay off your mortgage following the death of one or more covered individuals. The primary purpose of this type of coverage is to reduce the financial burden placed on surviving family members following the death of a loved one. Homeowners who invest in this type of insurance coverage are making an important commitment to their families. This type of converge can ensure that one’s family will never be forced out of its home as the result of income loss following the death of a family member.

Who Needs Mortgage Protection Insurance?

In single income households, or families in which one partner earns the majority of the money, many people think that the only covered life needs to be that of the primary breadwinner. However, it is likely that the death of a non-working spouse, or one who works part time, can also have a serious impact on a family’s ability to continue to afford to make mortgage loan payments.

Many people make the mistake of focusing only on income loss following death. They neglect to think about the expenses that will increase if either adult household member is no longer around. For example, if the non-working spouse is staying home with young children, the family does not have to pay for full-time child care. However, if that parent were no longer there, the working parent would have to pay for child care, which is a significant expense, in order to continue working.

Where to Get Mortgage Protection Insurance

There are a number of different options for making sure that your family remains financially able to stay in its home following the unexpected death of one or more members of the household. Many banks and other lenders offer mortgage protection insurance policies that can be purchased at the time you close on your home loan.

These types of policies are specific to one’s mortgage, and proceeds are disbursed to pay off the remaining loan balance upon the occurrence of a covered event. It is also possible that the company who carries your homeowners’ coverage offers a mortgage protection policy. Payments for these types of polices can generally be included in the escrow payments for homeowners insurance and property taxes that are included in your monthly house payment.

Another mortgage protection insurance option, however, is to take out term life policies on the adult members of the household. These types of policies put more control in the hands of the surviving family members. Policy proceeds can be used to pay off the mortgage in a lump sum, as with a traditional mortgage protection insurance policy, or the individual can choose to continue making monthly payments while investing or otherwise utilizing the remaining funds.

No matter which coverage option you select, the important thing is to make sure that your family is protected even under the worst possible circumstances. When you think about the alternative, the cost of mortgage protection insurance really seems to be quite small. When you purchase mortgage insurance protection, you are investing in peace of mind for yourself and for your family.

Loan Protection Insurance Provides Financial Support

loan protection insurance could provide you with financial support if you were to find yourself unemployed and without an income. A policy could also provide you with an income if you should fall ill or if you were the unfortunate victim of an accident that meant you could not earn a living.

When considering taking out loan protection insurance you would first have to work out how much your loan or credit card repayments added up to each month. All providers of protection will allow you to insure up to so much of your payments. The sum that you insure against is the sum that you would be given each month if you were to become unemployed or suffer incapacity.

It is important to shop around for loan protection insurance. Many consumers are not even aware that they are able to pick and choose from different providers as the high street lenders tend to have a stranglehold over the sector. Lenders fail to tell the consumer about their options for taking out a policy as the protection they add onto their loans brings them around £4 billion each year in profits. However simply by shopping around for your protection you are able to save literally hundreds of pounds on the cost of protecting your repayments.

You have to be aware that in the majority of cases if you take out protection alongside the borrowing the lender will work out how much it would cost to cover the loan throughout the term you take it over and then add it into the cost of the loan. Usually interest is added onto the loan after the protection is added on which means your loan can almost double.

By buying your policy as a standalone product you will not only get a quality product but also the information you need to decide if the cover is suitable. A lack of information given out at the time of buying cover has caused the majority of problems with payment protection in the past. Some individuals were sold a policy that they could not hope to claim against simply because it was not suitable. Loan payment protection can be a great asset to have but you have to ensure that it is suitable. If you choose to go with a standalone specialist in payment protection you will be given all the information and advice needed to be able to make sure it is. You will also be able to find when you cover would begin and when it would end.

All loan protection insurance policies begin after you have been unemployed or incapacitated for a number of days. Some ask that you wait for 30 days before putting in a claim and others ask that you wait for up to 90. Once the policy has begun paying out then you receive a payment each month for a set period and then it expires. Your policy could payout for up to 12 months or some providers offer cover that might last as long as 24 months.

The Importance Of Holiday Home Insurance

So, you’ve done it! You’ve found your own place in the Sun, you’ve signed the paperwork and now it’s yours to enjoy or let out – or both! However, whatever you do, don’t underestimate the importance of holiday home insurance.

If you own a holiday property then you must give the type of insurance you buy a lot of consideration.

You should be aware that most standard home buildings and contents insurance policies will not be suitable for either holiday lets or second properties.

This is for two reasons. First of all, standard policies do not provide cover where a property stands empty for a long period of time.

Secondly, they will not cover tenant occupancy. The financial ramifications of getting the wrong type of policy could be huge, so making sure that you get the right holiday home insurance is a must.

When getting insurance quotes, always tell the insurance company what the property will be used for. For example, if the property will stand empty for a lot of time as you will be using it as a second or holiday home, then the insurer will need to know for how long and how often this is likely to be.

However, if you intend to use the property as a holiday let, then you will need a different type of insurance – landlord insurance.

landlords insurance is used where people have buy-to-let properties and, as more people invest in properties to let, the need for this type of insurance is growing.

So when looking to insure your holiday home, do ensure that you choose the right policy to ensure that you are adequately protected and use a specialist broker.

Finally, do check that your holiday home insurance has extended contents cover and liability cover. This will protect both you and your guests should the unexpected happen.

A Quick Guide to Mortgage Protection Insurance

mortgage protection insurance is a form of insurance that has become more popular in recent years. This insurance can cover injury, illness, and even death, and helps to make sure that you and your family won’t fall behind on mortgage payments should the unexpected happen. There are several different types of mortgage protection insurance offered by a number of different insurance agencies, so if you have been considering purchasing this insurance then it’s important that you take the time to know exactly what it is that you’re buying before you sign on the dotted line.

What Mortgage Protection Insurance Is

Mortgage protection insurance is a specialized type of life, health, or disability insurance that focuses not on funeral or medical expenses but instead on making sure that your mortgage payment doesn’t fall behind. Different insurance providers may provide different payout options or benefits packages, but the end result is that if you are injured, fall sick to the point that you cannot work, or are killed, then the insurance payout is sent to you, your family, or in some cases to the mortgage provider directly to ensure that your house or other mortgaged real estate doesn’t run the risk of foreclosure.

Knowing How Your Insurance Works

It is important that you understand exactly how different types of insurance work so you can choose whether this insurance would be in your best interest. Since there are different types of mortgage protection insurance different insurance providers may pay out differently

Mortgage protection insurance that is sold as health or accident insurance is designed to provide short-term relief while you recover in order to help keep you from falling behind on your mortgage in the time that you are unable to work. There is often a limit as to how long you will continue to receive payments from this insurance, and depending upon the policy it may be as short as three months or as long as six months to a year or more.

Mortgage protection insurance that is sold as a form of life insurance is designed to help your family pay off the mortgage in the event that you should pass away. This insurance works much like any other life insurance, though in some cases it may be paid directly to the bank or mortgage lender specified in the policy. More often, however, the policy simply pays out to your family so that they can pay the mortgage as well as use some of the money to cover funeral costs or other expenses.

Costs, Benefits, and Potential Problems

The cost of mortgage protection insurance tends to be in line with other forms of disability or life insurance, though that cost will obviously vary depending upon your personal medical history, habits and the insurance agency who you buy it from. Likewise, the benefits of the insurance are quite similar to other types of insurance that fill the same general role. Mortgage protection insurance serves as security to help make sure that you’re going to be able to make all of your payments even if something unexpected or tragic happens; in some cases you may even be able to lock in a lower interest rate for having the insurance as it serves as an additional guarantee to your mortgage lender.

Unlike some of these other insurance types, however, some mortgage protection insurance policies can be very specific about the payouts that they make and the circumstances that they will pay out under. It’s very important that you take the time to make sure that you understand the specific policy that you’re considering before you buy it in order to make sure that the insurance company is going to pay out the money that you or your family needs when they need it.

Finding the Best Deal

If you have decided to purchase mortgage protection insurance it’s important that you locate the insurance provider that will not only offer you the policy that you want but also will give you a good deal on that policy. Take the time to shop around both at insurance agencies in your area as well as online to see which places offer mortgage protection policies and the prices that they are willing to offer you for them. Collect quotes from several different agencies and websites, comparing the amount of coverage that each provides, the circumstances that they’ll pay out under, and the overall price that it will cost you per month or per payment period for the insurance. If buying a life insurance option, talk it over with your spouse or family to get their input on it. Ideally you’re going to want to find the best balance between price and coverage that you can.

When boating insurance may be a waste of money – Part 1

Boating insurance may be a waste of money if your boat doesn’t sink. That’s about all the insurance will cover.

boat insurance is expensive for two reasons, boats sink, and people sink boats, for the insurance.

“A boat is a hole in the water that you throw money into,” is an old saying for a good reason, but people still buy boats and insurance. It’s hard to swim and fish at the same time, so I understand why people buy boats, but you don’t need insurance if your boat floats, and isn’t that what a boat is supposed to do?

Insurance of any kind is where the purchaser bets that there will be a loss and the seller bets that there won’t be a loss. It sounds like the purchaser is getting the better end of the deal, but the bookies figure the odds and make sure they have a much better deal than the purchaser. That’s how they manage to build nice buildings, pay their employees, and pay their shareholders. Then, when a hurricane throws your boat a half-mile inland, they claim it was an act of God and let the government pick up the losses.

They can’t pay for your loss and make a profit, too, silly.

Boat Insurance – which one for you?

You might not have realised it, but boat insurance is the oldest kind of insurance there is. People have been insuring their boats since the 17th century, and over time a number of standards have arisen. The chances are, though, that you’re probably much more familiar with car insurance – so the good news is that car insurance and boat insurance are actually very similar.

Basically, there are three situations you can be insured against: your boat (or its cargo) being damaged, your boat sinking, and your boat hitting another. Although few countries make it a requirement that your boat must be insured (considering how many boats sail in international waters), you would be very wise to at least buy the third party insurance, in case you hit a boat that is very much more valuable than your own. You will probably find it quite unnecessary to insure your boat against total loss unless it is very valuable – it is mainly practical for large ships, and especially for ones carrying valuable cargo.

As with car insurance, policies come with an excess to discourage small claims – for boat insurance, this is usually quite a large sum of money, as the intention of the insurance is to cover you against substantial losses instead of just scratches and dents.

There are also a few kinds of insurance you can buy that are unique to boating, although it is unlikely that you will ever find yourself in need of them. If you get Increased Value insurance, your policy will pay out at your boat’s market value if it is more than the amount you insured it for – only useful if you expect your boat to go up in value. Finally, if you’re thinking of sailing into a warzone, you might want to get war risk insurance. Of course, you might also want to get your head checked out, if you know what I mean.

Mortgage Protection Cover Offers Great Short-term Protection

mortgage protection cover is a short-term insurance product gaining in popularity in the UK, especially in today’s current unstable economic climate. The insurance typically has payout plans that provide monthly income payments based on income and mortgage amounts. These payout plans generally run from 12 to 24 months. While there are some opportunities buy plans for longer protection, it is usually more economical to go with other insurance products based on the increased premiums for longer terms.

Mortgage protection cover is designed to provide protection for full time employed people concerned about paying their monthly mortgage in the event of involuntary redundancy, illness, accident. Plans can be purchased with one, two, or multiple covered events. Obviously, the more events that an individual has covered, the higher the premium cost becomes. However, by working with an insurance broker, most individuals can find affordable plans to cover all available job loss events.

Allowable coverage amounts vary, but consumers can usually find plans that cover full mortgage payments, plus some allowable monthly expenses. Some providers base the coverage amount available on monthly income. Mortgage protection usually has a higher allowable coverage than other payment protection insurances, with many providers allowing coverage up to 65 per cent or so of monthly income.

Mortgage protection cover is gaining in popularity as more consumers become aware of the insurance. Concern about controversial selling practices used by high street banks and large lenders has also lead to greater awareness and increased education of consumers. The Competition Commission will announce results of its current investigation into the payment protection insurance (PPI) industry, in February of 2009. Their investigation was driven by consumer advocate groups who expressed anger over mis-selling practices.

Large institutions have developed a reputation for selling products to ineligible patrons, such as retirees and part time employees. They have also regularly packaged the insurance with mortgages, credit cards, and other loan products in order to pressure consumers into paying high premiums for the protection. Some have even failed to directly communicate to customers that they were even paying for the insurance, instead using fine print to convey the message.

The good news is that insurance premiums are available at 40 to 80 per cent of standard bank premiums. insurance brokers not only offer lower premiums, but they also maintain a better reputation for fair selling practices. Many brokers are members of organizations or associations that enforce regulations or policies to protect member customers. Brokers are also usually knowledgeable about their products and happy to help customers find the right products at the right rates.

Since October of 1995, the State has not provided assistance for unemployment or disability for the first nine months an individual was out of work. For many Brits, this is enough time to lose their homes or risk their family’s financial well-being. Citizens must take control of their own financial situation and may want to look to some form of low cost mortgage protection cover to protect their homes.

Protect your Financial Status Using Income Protection

Everybody likes surprises and appreciates them, but when it come to the nasty and unwanted ones you have to be very careful. In this world that is full of surprises and most of them nasty ones, it makes a lot of sense to protect yourself and your family.

Taking this into consideration I would have to say that income protection is a very valuable protection against bad things that could happen to you. Suffering an accident at work or getting sick and not being able to do your job is one of the worst surprises what life can bring your way. The period of recovery can mean major financial problems, not to mention stress and maybe even household trouble. So would it not be better if you had avoided all that and outsmarted life’s little surprise?

This is where income protection steps in. There are numerous agencies that can offer you this well needed financial protection and the plans that they have can match each and every person, no matter the occupation and other risks involved.

So to make this clear for you income protection means that while you recover from an injury cause by an accident or while you are getting better because you came down with something, the insurer will have to pay you seventy- five percent of you salary until you are able to go back and work again. However, as there are many agencies that can organise income protection policies, there are also many schemes and clauses of agreement. So before you prepare yourself to surprise life and buy such a policy, you have to make sure that life does not beat you to it and pulls other surprise on you.

When you decide that it is time to buy income protection insurance and make sure you are financially safe while recovering from an illness or injury, you also have to make sure that you know what policy you are signing and that all the clauses and terms are to your understanding and liking. It is a well know fact that any company can come up with its own definition of what critical illness is and thus trick you into signing something that you do not agree with.

As I have said before, life is full of surprises and sometimes more nasty than you care to imagine. So while you are struggling to beat life and protect your income in case of injuries, life can cook up another surprise and you can discover that the income protection policy that you have closed is not what you expected it to be. This is why whenever you decide to buy such a policy or any other policy for that matter, make sure you understand all the terms and read all clauses before buying the policy. This way you are two times safe.

Life can play nasty tricks on you, but you must know that you can out smart it any time you want and closing an income protection policy is one of the many ways to do that.

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