Mortgage payment protection insurance (MPPI) can give enormous benefits especially when it comes to giving peace of mind, but it is not suitable for all individuals. For those who are eligible to claim against a policy then it would mean a tax free monthly income with which to continue meeting your mortgage repayments each month for between 12 – 24 months depending on the provider.

Polices will usually give you an income from anywhere between day 31 and 90 of being continually unable to work due to unforeseen redundancy, ongoing illness or accident that prevents you from working. As with all insurance, mortgage payment protection has exclusions some of which are to be found in the majority of policies and others which can be added by the provider.

Typically, individuals who are self-employed, suffering an ongoing illness, are retired or who are only working on a part time basis would not benefit from taking out cover. You have to read the terms and conditions over thoroughly before committing yourself to a mortgage payment protection insurance policy and talk to your provider so you will get access to the information needed.

The Mortgage payment protection insurance can provide invaluable cover but only if the individual understands it and ensures that it is right for their circumstances. An ethical specialist will provide the information needed to determine it is suitable, but in the end it is down to those buying the protection to make sure that they would be eligible to claim.

Faith has been lost in the product – along with the family of protection suites – since it was highlighted in the media that mortgage payment protection insurance policies were being mis-sold. In 2005 the investigation into the sector began after a super complaint from the Citizens Advice to the Office of Fair Trading. The Financial Services Authority began their own study in to the market place too, which is currently ongoing and they handed out fines to several well known names on the high street.

The independent body the Competition Commission are now reviewing the protection insurance industry and it is anticipated that their findings will be released early in 2009.

Despite recommendations set out for changes that needed to be made when it came to selling a policy, in 2007 over 4,000 cases were investigated for mis-selling. At the moment around 70,000 payment protection policy holders are seeking compensation for being mis-sold their policy and it is thought that around half of the 20 million policies that have been taken out could have been mis-sold.

Reading the conditions set out in the mortgage payment protection insurance is very essential if you want to be able to claim. In all fairness mortgage insurance does fair better than payment protection has with the majority claims being paid out. Regardless of this those considering taking out cover do have to be on their toes when it comes to buying their policy. A standalone provider will offer a quality product that offers value for money and all the information needed to determine its suitability.

If you want complete peace of mind that if you should lose your income you would not be left struggling each month, then you need to give some consideration to payment protection insurance. This type of insurance would cover a range of essential payments that you have to keep up with each month. Policies would cover against the possibility of you losing your income after becoming unemployed due to reasons not of your own such as by being made redundant. It would also protect against the possibility that you might not be able to work if you were sick or suffered an accident.

For instance if you have mortgage repayments that have to be kept up with then you could consider taking out mortgage payment protection. This would ensure that you would have the money needed each month to be able to pay the mortgage payment when it was due. You would not have to worry about falling behind on your mortgage and of the lender choosing to repossess your home.

Debts such as loan or credit card repayments also have to be kept up with and you are able to do this by covering them with loan payment protection. A policy can be taken to insure up to a certain amount of your loan or credit card repayments each month to make sure that you do not get into debt with them. Getting behind on loan repayments can see you being taken to court by the lender and this means at the very least your credit rating would be affected and the worse situation would see you obtaining a County Court Judgement and possibly having bailiffs take possessions of yours to sell.

If you are worried about being able to meet all of your essential bills each month then income payment protection can be taken. With this type of insurance behind you there would be no worry about missing mortgage repayments or loan repayments and you would also be able to keep up with all your other outgoings each month. You can insure up to so much of your income, all providers will put a limit on the amount you are able to insure each month and then you get this back. With the cover you are able to keep ahead with your bills and this leaves you free to find work if you are unemployed or to make a recovery.

The premiums for all payment protection insurance are based on how much you choose to protect, your age and with mortgage insurance whether you choose to cover against all three eventualities or just need accident and sickness cover only or unemployment only. You would then pay the premium each month and if and when you needed to claim wait the period of time set out in the policy before claiming.

Providers usually ask that you wait at the least 30 days and with some providers for up to 90 days before claiming on your payment protection insurance. The policy would the provide your tax-free income for the time set out in the cover which is usually either 12 months or 24 months. After this your policy would end but generally it is more than adequate enough time to have recovered or to have found work again.

Payment protection insurance could give you a tax free sum of money each month with which to pay your loan repayments and keep you out of getting into serious debt problems. Payment protection insurance is a generic term for mortgage payment protection, income protection and loan payment protection insurance and all do the same thing which is to be your lifeline if you should come out of work due to accident, long term sickness or unemployment.

Payment protection insurance would begin to give you a monthly income with which to pay your essential outgoings once you have been out of work for 30 days or more and it would continue to give you an income for up to 12 months and with some providers for 24 months. If you take out mortgage payment protection then your home won’t be at risk as you would have the money each month to ensure you could keep up with the repayments.

If you want to safeguard your monthly loan repayments then loan payment protection could be suitable when it comes to making sure you can carry on meeting your loan repayments. And income protection gives you a replacement income up to a set amount each month.

The payment protection insurance cover can be taken out to guard against coming out of work due to accident and sickness only, unemployment only or for accident, sickness and unemployment together. The quotes for payment protection insurance vary widely and it is essential that you get several quotes for the cheapest premiums. Shopping around for your payment protection insurance cover will enable you to secure you the cheapest premiums while getting you a quality product providing of course that you have ensured a policy would be suitable for your needs.

Always take into account there are exclusions and the most common of these include only working part time, being retired, being in self-employed or suffering from a pre-existing medical condition at the time of taking out your policy. There are of course many more and it is essential that you read the small print before purchasing your payment protection insurance.

For years the banks and loan providers have raked in high profits by selling Payment Protection Insurance to clients whilst the clients were taking out loans. The problem has been that the insurance has not always been properly explained to the client so many have found that if they claim, there’s some clause that rules their claim invalid. On other occasions, the bank has not made it clear that the insurance is optional or has not clearly spelt out the true cost of the insurance.

All this has got the Competition Commission and the Financial Services Authority very hot under the collar.

The Commission recently published its findings of its enquiry into the Payment Protection market, worth some £5.5 billion. Their report concludes that the market is uncompetitive because most buyers do not realise that they can get the same cover cheaper elsewhere and the selling tactics used by the lenders mitigate against the client shopping around. Furthermore, the Commission concluded that many of the policies offer very limited cover for illness or unemployment. (Indeed, in recent weeks some insurance companies have withdrawn from providing unemployment cover as they limit their exposure to the effects of the credit crunch.)

The Commission believe that lenders should not offer Payment Protection insurance whilst the loan is being arranged. They believe that clients should be given at least 14 days to shop around for the insurance before the lender attempts a sale. And they also want to ban the sale of single premium Payment Protection Insurance – that is where the total cost of the insurance over the policy’s full term is added up and added on to the loan.

We very much support the Commission’s finding but unsurprisingly the lenders are less impressed! They have been allowed to respond to the Commission and we understand, they have strongly opposed the findings.

We view the issue as should the lenders be allowed to power sell Payment Protection Insurance when the client would get a much better deal elsewhere? Let us be charitable and assume that the lenders will clean up their act and ensure that they properly check that the client would not be excluded from claiming, that they clearly explain that the insurance is optional and clearly explain the true cost of the insurance. (I think we are being fairly charitable here as past history and the Financial Services complaint files would suggest that it’s a tall order!)

For the 14 day break to be really effective, the lenders should be required to tell their loan clients that it is very much in their interests to have Payment Protection insurance, which it is, and they should get some quotes before the lender comes back to the client with their quote on 14 days time. The lenders are sure to tell the client how important the insurance is but can you see lenders effectively suggesting that the client gets competitive quotes before they have time to present their own quote? No chance!

So, if at any time you need Payment Protection Insurance, please do not automatically accept the quote your lender provides. The fact that you are reading this article proves that you use the internet – so use the power of the internet yet again. Search for Payment Protection Insurance and I’ll bet you the ham sandwich I’m eating, that you’ll save at least 30% from the lenders “very competitive” quote.

IT’S LEGAL’S MITON FIRMAN says that the Payment Protection fiasco has gone on long enough. He is determined to bring more companies to the table.

“Payment Protection insurance has been widely and in many cases  mis-sold with companies dtermined to pick up the huge commissions on offer. Salesman have been encouraged to sell at any price and the loser has inevitaby been the helpless consumer – the innocent one.”

Milton Firman continues:

“This one of the largest and longest of scandals to hit the financial services industry. PPI has been mis-sold in many ways. Often the policyholder didn’r even know he had the cover. Often it is far too dear, inappropriate and not sold with any figures provided to the consumer. No mention is made of the fact that the sum is added to the loan and interest is in effect cgareged on the premiums. It is a total disgrace. People across the country have been sold down the river.”

Anyone who has – or has ever had PPI can claim back all their premiums, costs and interest to date.

Miton Firman can be contacted on his PPI FREE ADVICE LINE on 0161 929 7766 24 hours a day every day. Inaddition to providing FREE ADVICE, he will also be pleased to recommend soimeone to take on your claim on a no win no fee basis with no up front fees to be paid on any account. There is however no obligation upon you and you may take advantage in any event of his FREE PPI ADVICE LINE.

Especially in the present climate job loss is a worry and accident or illness can happen at any time. It is wise to have income protection. This needs to stretch to all your outgoings, not just one direct debit of the many. Payment Protection Insurance needs to be looked at carefully as it is not always the best cover. On the internet there are some very competitive protection schemes and it really is worth exploring further. We offer some other options to consider too, as follows:

Know where you stand with your employer – Understand fully what cover you have if you are employed and find out what they would pay you if you were ill or had an accident and for how long. The last thing you want to do is to pay for extra cover that you already have. Usually an employer will only pay out for a certain time period so you must establish this and work out what you would do if you were still unable to return to work and the end of this time. If you are unemployed or self-employed then you do not have an employer to turn to so it is imperative that you some form of cover to protect you.

You may be entitled to state benefits – Any state benefits are paid based on your National Insurance Contributions for disability, accident and illness, so you would need to find out if you were eligible. As an employee, Statutory Sick Pay (paid by your employer) usually pays out for up to 28 weeks and at present is just over 75 pounds per week. SSP is sometimes topped up by some employers but at their discretion and can be more or less than 28 weeks. This will all be detailed in your contract of employment. Once the 28 week period has elapsed some employees may be able to claim Incapacity Benefit short-term; it is paid from the 29th week up to the 52nd week of sickness and is also just over 75 pounds.

Statutory Sick Pay cannot be claimed by anyone who is self-employed, but in some cases they can claim Incapacity Benefit instead. You can visit the Department of Work and Pensions website for full details of state benefits.

Changes to benefits – In October 2008 some changes were made to some benefits. Incapacity Benefit has been abolished and has been replaced by a new one called Employment and Support Allowance (ESA). Statutory Sick Pay is still paid for 28 weeks to employees but after that there is an assessment period of 13 weeks when it will be determined whether you are eligible for ESA and for what type. During this period you get an amount per week which is around the same as Jobseekers’ Allowance – around 60 pounds per week for over 25 year olds. The self-employed, however, now go straight through to the assessment period of 13 weeks.

After the assessment there are 2 types of ESA that you may be awarded: if you are unable to undertake any kind of work you will be entitled to claim ESA of 89.50 – 102.10 pounds per week. If you are able to do some form of work you can claim ESA of 89.50 pounds until you can work and you also have to attend interviews that are work-focused to help you back into work.

Purchasing a home can be one of the most stressful yet joyful experiences of a person’s life.  Becoming a home owner is a huge financial responsibility, as you not only have a large mortgage payment requirement, but also the general maintenance and expenses that come with owning a home.  A solid and steady income is crucial for those who own a home, and protecting your large investment from unexpected events with a mortgage payment protection insurance program is vitally important for all homeowners.

If you are purchasing a home, it is likely that you have a steady income and a good employment history.  You are financially secure enough for a financial institution to loan you a large amount of money for the purchase of your new home.  It is expected that you will be able to pay your mortgage payment each and every month, so that your financial obligation will be fulfilled and your homeownership may continue throughout the years.

It is hard for many of us to imagine that something might happen that would take away our ability to pay our mortgage payments; however, events that threaten our incomes occur every day.  You may find yourself let go from your current employment, you may fall ill, or be involved in a disabling accident, all of which leave you with no monthly income.  With no monthly income, how are you to pay your daily living expenses, as well as any debt you may have, including your mortgage payment?

Purchasing a mortgage payment protection insurance plan when you buy your home is very important in protecting the investment of your home and your family’s financial security.  Never leave anything to chance, especially when it comes to the roof over your head and the well being of yourself and your family.

Curbs on the sale of payment protection insurance proposed by the Competition Commission could result in more expensive loans, lenders have warned.

The policies cover debt repayments if a borrower cannot work because of accident, sickness or unemployment, but they have been widely mis-sold. To prevent the worst abuses, the Commission wants lenders to be prevented from contacting a customer about the insurance within 14 days of a credit agreement being signed. It also wants single-premium policies outlawed, and advertising made clearer.

Lenders gave warning that the proposed crackdown would force them to push up rates on loans because they would no longer be able to subsidise deals with profits earned from the insurance.

Payment protection is one of the last big moneyspinners for banks such as Lloyds TSB, Barclays and HBOS, and is worth an estimated £3.5 billion. A huge slice of the profit is expected to be lost if the proposals are approved.

Stephen Sklaroff, director-general of the Finance and Leasing Association, which represents lenders that sell the insurance, said: “Significantly fewer policies will be sold. That will inevitably have an effect on loan rates, possibly pushing up rates by several percentage points.”

That could force loan repayments to rise by more than £100 a year. A borrower seeking a £10,000 personal loan over five years, for example, can lock into a rate of 7.8 per cent with yourpersonalloan.co.uk, paying £200.54 a month. If rates were to jump two percentage points, to 9.8 per cent, repayments would rise to £209.46 a month – an extra £107.04 a year, or £535.20 over the five-year term.

The Competition Commission has been investigating payment protection insurance for nearly two years and estimates that 14 million consumers have been overcharged by £1.4 billion. A spokesman said: “Rates could go up as there is an element of cross-subsidy on personal loans, but that can’t justify us not dealing with the clear problems that we have found.”

Most people today have at least one loan they have obtained through a financial institution in order to purchase large items such as homes, vehicles, recreational vehicles, etc. The timely repayment of these loans is very important. In order to successfully repay any loans you may have acquired, you need a steady income. If for some reason you lose your income due to illness, accident, or job loss, repaying your loans could become impossible. Purchasing loan payment protection insurance to guarantee that your loans will be paid, in the unfortunate event that you are unable to do so, is a very wise idea.

Whenever a person looks to secure a loan for a large purchase, their income, employment experience, and ability to pay back the loan is scrutinized by the financial institution considering the loan. At the time you are taking out a loan, it is difficult to imagine that something may occur which would prevent you from paying it back in due time. However, unexpected things do occur.

It happens every day…an income earner is struck ill, involved in a disabling accident, or laid off from his or her job. Though you may have a savings account, chances are, that savings account will only last for so long before you are left wondering where you are going to come up with the income to pay all of your daily and monthly expenses, including any open loans you may carry.

Purchasing loan payment protection insurance is one of the best ways to make sure that if an event occurs leaving you unable to pay your expenses and loans, your payments will, in fact, be made through your policy; and, the avoidance of late fees, finance charges, and collection phone calls will be achieved.

In todayâ??s world, most of us have at least one loan that we have secured through a financial institution or credit card company.  The repayment of these loans in a timely manner is very important in establishing a good credit standing and in the avoidance of late fees and additional finance charges.  In order to repay loans and credit lines, a steady and secure income is required.  In the event that you lose your income due to job loss, illness, or accident, will you still be able to repay your debts in a timely manner?  If you prepare yourself ahead of time for such events with a loan payment protection insurance policy, you will.

Any time you apply for a loan or credit line of any sort, the lender will always look at your credit rating, your ability to pay back a loan, and your source of income.  Chances are that at the time you are requesting a line of credit or loan, you have a secure income and are fully expecting to be able to pay back the loan within the guidelines of your agreement with the lender.  It may be difficult at the time to imagine that you may not be able to pay back these loans.  However, unexpected events that may threaten your income do occur, leaving you without the means to fulfill your obligations.

Every day there is a possibility that you may be let go from your job, become ill, or be involved in accident that leaves you unable to work and without income.  You may have a savings account that you can fall back on, but how long will it be before your savings account is depleted?  You could be left wondering how you will pay back all of the loans you have acquired, and if your home, autos, or other belongings purchased on credit will be taken from you due to the non-payment of your loan obligations.

Purchasing a loan payment protection insurance plan is one way to ensure that, even if you are left without income due to being unable to work, all of your loan payments will in fact be paid through your loan payment protection insurance policy.  Working with trusted insurance company to design a loan payment protection insurance policy to fit all of your needs and pay all of your loans is the best way to protect yourself, your family, and your livelihood.