If you lose your job and income to unemployment then it can take months to find work again and your mortgage lender would not wait for you to get back to work. Falling ill or suffering an accident could also mean you would have to take months from work and not have an income. Mortgage payment protection would provide you with a tax-free replacement income for all of these eventualities.

Mortgage payment protection is usually offered alongside the borrowing when taking out the loan. Lenders will try to get you to take it this way as they make huge profits from the cover. However you do have a choice of where you buy your protection and your mortgage should not be threatened if you choose to buy a policy independently.

Buying from a standalone provider provides you with more benefits than being able to make savings. This is also the best way to get the information needed to make an informed choice regarding the policy you are considering buying. You can choose to take out a policy to safeguard against all three possibilities of losing your income, accident, sickness and unemployment.

However you might only need to take out cover to guard against unemployment only. Some providers will allow you to tailor your policy like this. You could also just take out protection to insure against a loss of income due to accident and sickness only. This is excellent as the cost of the cover will be based on this along with your age. As providers offer age based mortgage payment protection this makes protecting the mortgage more affordable to the younger generation.

When choosing a policy you have to take factors into account such as how long the cover would protect you and when it would start to payout.

Some policies begin providing you with the benefit from the policy after unemployment or incapacity of 30 days. With others it can be 90 days, some will backdate cover to day one of you coming out of work through accident, illness or unemployment.

Once you have claimed on the policy and have started to receive an income it would only last for a certain period, which is usually adequate time. Providers offer cover for a period of 12 months, while some would offer an extended period of 24 months so you have to check in the terms and conditions before buying.

You also have to consider the fact that the mortgage payment protection policy would only be as good as they provider selling it. With this in mind you should also check out the company you take the quote with. Look at their background and see how long they have been in business. Also look for a provider that gives plenty of advice and information up front about their policies before you buy.

By Simon Lance Burgess

About the Author

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of mortgage payment protection.

Advice on Personal Insurance & Commercial Insurance. Copyright ©. All Rights Reserved.

Advice on Personal Insurance & Commercial Insurance. Copyright ©. All Rights Reserved.

Braintree, Essex (PRWEB) June 17, 2008 — Despite its poor reputation, Payment Protection Insurance – where properly sold – is a financial lifeline for those unable to keep up their mortgage or loan repayments due to unemployment, says Simon Burgess from independent PPI provider, British Insurance.

Unfortunately this economic doom and gloom is set to continue and impacting on all sectors, construction, retail, leisure etc – even Government. HMRC is scrapping 4000 posts and closing 95 offices, a clear indication that job security is a thing of the past.
The number of unemployed in the UK increased by 38,000 to 1.64m between February and April this year and according to the Office of National Statistics, manufacturing and financial services have shed the most jobs so far with 11,000 and 20,000 respectively during Q1.

Economists predict there will be more job losses over the next two years and with the mortgage market in meltdown, banks and building societies’ share prices plunging and loss announcements becoming commonplace, new homes sales slumping to a 30 year low, negative equity rising and consumer spending falling, Burgess believes it’s more important than ever to include Payment Protection within the insurance portfolio.

“Unfortunately this economic doom and gloom is set to continue and impacting on all sectors, construction, retail, leisure etc – even Government. HMRC is scrapping 4000 posts and closing 95 offices, a clear indication that job security is a thing of the past.”

He continues: “Everyone must ensure they have the means to maintain their mortgage or loan commitments should redundancy, accident or sickness occur. Whilst some have savings to fall back on, others will not be so fortunate and this is why PPI is so vital. News that the Competition Commission is considering banning the sale of this product by High Street lenders should not deter people from purchasing this cover – it does add value and will help in times of hardship. Consumers need to hold their nerve and shop around.

Burgess concludes: “There are good firms out there, selling PPI properly at affordable prices. This cover can make the difference between losing and keeping your home.”

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Nationwide Biweekly Administration (NBA) announced the addition of a new product to help customers protect themselves, their family and their financial future. Nationwide Biweekly Administration, one of the nation’s leading biweekly mortgage administrators, is pleased to offer unemployment insurance to protect those who can’t work due to involuntary unemployment.

“In today’s uncertain economy few things are scarier than losing your job,” said Dan Lipsky, president of Nationwide Biweekly Administration. “When you’re suddenly out of work it’s hard to make the next mortgage payment, car payment and other bills. It’s everybody’s biggest fear, especially in the midst of a recession.”

In these turbulent economic times Nationwide Biweekly Administration offers the security that even if one can’t work there’s a cushion that can ease the sting. Depending on the program selected unemployment insurance can pay up to $2,000 per month. Some of the features include…

* No health questions
* Same price for all ages
* Joint coverage option
* Easy add on to an existing biweekly program

Nationwide Biweekly Administration is the only Biweekly Administration Program to offer this coverage.

Nationwide Biweekly Administration Inc is company based in Xenia, Ohio. It is one of the nation’s largest administrators for weekly and bi-weekly payment programs. Millions of transactions each year are processed through its Interest Minimizer program.

Mortgage payments are administered to more than 2,100 different mortgage companies, banks, and credit unions nationwide. The Interest Minimizer program provides customers with an established, automatic, worry-free mortgage payment program to help them save tens of thousands of dollars in interest payments and to pay off their mortgages years ahead of schedule. Additionally, the company provides mortgage protection insurance to help customers protect their most important asset, their homes.

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A life insurance contract is relatively straightforward; you agree to pay a premium at regular intervals, and the insurance company agrees to pay a certain sum of money to your beneficiary upon your death.

The Definitions of the Parties Involved

There are three parties to a life insurance contract. First, there is the insured. This is the person whose life is being insured under the policy. Next, there is the insurer. The insurer is the insurance company who underwrites the risk.

And third, there is the owner. The owner and insured are not necessarily one and the same. Someone can buy a life insurance policy to insure the life of someone else, such as their spouse.

The person who buys the policy is the owner, and the person whose life the policy is based on is the insured. When the owner and the insured are different people, premium payments are the responsibility of the owner.

Every life insurance contract also has a beneficiary. This is the person who receives the proceeds from the policy in the event of the death of the insured, and is assigned by the owner. There are two types. An irrevocable beneficiary can not be changed unless the beneficiary gives his or her permission; if it is revocable, the owner can change it at any time.

Terms & Conditions of a Life Insurance Policy Defined

The policy is subject to certain terms and conditions. There are usually certain exclusions that apply, depending on the person being insured. But with almost every policy, death as the result of suicide during the first two years of the policy term is excluded from coverage. Also, during the first two years of the policy, often referred to as the contestable period, the insurance company retains the right to not immediately pay out, even if the death is caused by a condition that is covered in the policy. The company can order an investigation into the death of the insured, to make sure that the death was not deliberate or the result of homicide.

Definitions of the Elements of a Life Insurance Policy

The amount paid to the beneficiary is called the face amount. The maturity date is reached upon either the date when the insured deceases or reaches a certain age. Life insurance is most often used to provide income protection to the spouse of the deceased. Regardless of the reason for buying the insurance, the owner (if not the same person as the insured), must have an insurable interest. In other words, the owner of the contract must have a reason for wanting to insure the life of that person, otherwise the contract is void.

When the person covered by the policy dies, the insurance company requires proof of death before paying the claim. A notarized death certificate is the most commonly accepted form of proof. The benefit is paid out either as a lump sum or as an annuity that is paid out over time. Any annuity can be a good way to receive the benefits. It is possible for the beneficiary to set up a lifetime annuity, which would guarantee that person a certain amount of monthly income for the rest of his or her life.

Basic Types of Life Insurance

There are two basic types of life insurance, temporary and permanent. Temporary insurance is known as term life. An example of a term policy would be a 20-year term life, which means that the policy will pay a death benefit if the person dies within the next twenty years.

Permanent insurance includes whole life and universal life. Whole life provides for a payout no matter when the person dies, but premiums have to continue to be paid, usually right up until the insured reaches the age of 100. Universal policies are somewhat similar, but they allow for greater premium flexibility. Universal insurance is somewhat complicated; you should talk to an agent before buying it.

I hope this information has helped you become acquainted with life insurance. You should sit down with your spouse and talk about buying a policy. Then, call an agent who works for an insurance company with a strong financial rating and make an appointment to discuss your objectives. Use the information that was presented here to help you make intelligent choices so your family will be protected in the event that something happens to you.

Author Description
Jim Pretin is the proprietor of http://www.forms4free.com, a service that helps programmers make simple email forms for websites.

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