Best UK Guide to Insurance : ARTICLE > Mobile Phone Insurance & Mortgage Payment Protection Insurance
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Mobile Phone Insurance: Special Article
Mobile phones are a must have item for most people whether for business or the home. Since there are so many new luxury mobile phones bought every year, it is important we do not loose them. Mobile phones can get damaged, lost, dropped in water or stolen.
Importantly, those who have contract phones who loose their phones will have to replace the phone from their own funds if it is not insured. The phone provider will take out a monthly contract amount from your bank account. Network providers give a free handset if you take-up a contract with them. However, since these handsets are expensive, if you loose the handset you will be personally liable and will have to pay for a replacement handset. So the handsets are not really free. You will need to take up insurance. Check the insurance policy terms particularly the exclusions and see whether it meets your personal circumstances.
Most handsets are:
-Dropped in water.
-Go around in the washing machine.
-Take a tumble on to concrete or hard surfaces.
The simplest form of insurance for your phone is to add it to home contents insurance policy but you need to check:
-That it includes cover away from your home.
-It covers for such events as accidental damage, theft and loss.
-What the excess is?
-When the phone will be replaced after filing a successful claim.
-Whether it will the same model and specification.
-Whether you will receive a cheque or a replacement phone.
-The replacement of the SIM card.
-Charges because of fraudulent calls.
-Whether the insurance included extended warranties.
Fraudulent claims are increasing all the time and the police are aware of this. Just losing your phone and not remembering where you left it may not be a good reason for a loss and may annul your claim. Real forceable theft has to occur before the insurance company may pay out. Make sure that your insurance policy covers for loss.
RISK: If you loose you mobile and if you are on a contract you will still have to pay for the monthly contract and replace the handset at your own cost. If you have a short time left before the expiry of your contract it may not be worth claiming.
Lastly, Report your phone stolen using 08701 123 123 which applies to all UK network providers.
Mortgage Payment Protection Insurance: Special Article
Mortgage payment protection insurance may compensate your mortgage payments in the event that you become ill, have an unexpected accident or become redundant.
The social security department of the government may not payout interest on your mortgage for a period of up to 9 months for mortgages taken out after 2nd October 1995. Those who have had their mortgage before 1st October 1995 will get nothing for the first eight weeks, then 50% interest payments only between nine to eighteen weeks and finally after eighteen weeks there will be 100% payment of interest on the mortgage. Capital mortgage payments will not be compensated by the government.
The government:
· May pay interest on the first £100,000.00 only.
· May not make any payments to those with savings over £8,000.00.
· May not pay those with their partner working 16 hours a week.
MPPI:
· Is optional.
· Not compulsory.
· Option to apply for accident and sickness cover only or comprehensive cover of accident sickness and unemployment.
· Consider any benefits from your employer.
· Cover lasts mostly 12 months.
· Consider the excess period.
Ensure you fully understand the exclusion clauses and in case of doubt consult your Independent Financial Advisor.
A building society or bank can repossess your home without having to take legal proceedings or approaching the courts. A considerable number of cases have occurred in the eviction of the home owner for non-payment of the mortgage.
Possible cause of repossessions is:
· Unemployment.
· Accident.
· Sickness.
· Death.
· Increases in interest rates.
Those with mortgages taken before 1st October 1995 can claim half of the allowable interest for the after 8 weeks and the full interest after 18 weeks. Those with mortgage after 2nd October 1995 will have wait nine months before interest is compensated.
If the case is dismissed by the courts the banks may still charge you a few thousand pounds of costs and if you miss three payments they may charge you fifty pounds for administration costs.
· This type of insurance is not compulsory and normally lasts 12 months only.
· Check out the internet insurance suppliers.
· Check out the deferment period or excess period before you can obtain any cash.
· Check that the policy takes you back to the point of the claim.
· Check any exclusion clauses.
· Check the claims process.
· Check all pre-existing medical conditions.
· Check about your employment status.
· Check that it is easy to cancel without excessive penalties.
· Check that you are not tied in for the entire mortgage term.
· Check that it may be suitable for your life style.
Mortgage payment protection insurance provides a safety net in the case that you cannot make your mortgage payments due to an accident, sickness of unemployment; all normally beyond your immediate control. The cost of premiums may vary in accordance with the excess period of 30/60/90 days, the sum insured and the duration insured (normally 12 months).
Points to note for mortgage payment protection insurance:
- Covers the insured for a period of 12 months.
- Is optional with your mortgage.
- You must be permanently employed for 12 months to claim the unemployment benefit.
- The self employed who cease trading will require proof of ceasing business from the Inland Revenue.
- Contract workers need to have worked for greater than 12 months and have had their annual contract renewed.
- There is right to cancel within 14 days.
- Pre-existing medical conditions, stress and back ache may not be covered.
- The policy will not apply:
- If your under 18 or over 65 years of age.
- You work less than 16 hours per week.
- You are aware of redundancy or unemployment.
- You have an existing illness which must be covered.
What questions should you ask your mortgage insurance provider:
- Is mppi automatically added to my mortgage?
- What is the premium for mppi?
- What is the deferment period?
- How long will you pay the mortgage instalments?
- What are the exclusion clauses?
- Can I read the full policy and keyfacts?
- What is the cancellation period?
- What is the refund policy?
- Can I pay the premium by monthly direct debit?
- What period in years does the mppi apply for?
- If I fully pay up my mortgage will the mppi terminate as well?
- What is your complaints procedure?
The Financial Services Authority and the Office of Fair Trading has been investigating into the high charges of protection insurance. It is important that Insurance Purchasers investigate the market fully and even shop on the internet. Mortgage payment protection can be useful if you fully understand the policy terms. The services of an Independent Financial Advisor would be recommended for impartial advice. You will need to understand the exclusions and whether the policy applies to your personal circumstances.
Most mortgage protection insurance policies exclude existing medical conditions and those who are working for themselves. There is also a big difference between the highest and lowest premiums.
Mortgage payment protection policies cover for a period of normally 12 months and have an excess period of 30/60/90days. Some medical conditions will not be covered and unemployment cover has additional exclusions. While the self employed will require a proof from the Inland Revenue that their business has ceased trading. Those on contract work will need to have worked at the same place for two years and have had their contract renewed. The excess for these types of policies is normally 30/60/90 days before any payment is made. Those with medical type claims will need to provide hospital evidence for the claim to be considered.
This type of insurance is useful if you are in permanent full time employment and are in reasonable good health.
However, this insurance may not be useful if:
· You have any pre-existing health considerations.
· You have enough savings.
· Your employer has a good health insurance scheme.
· You are in part time employment, self employed or a contract worker.
It is important to remember that mortgage payment protection is optional and there is no need for you to take a policy out.
It is worth considering the advantages of mortgage payment protection, if you cannot self insure and mortgage payment protection can cover for other household expenses.
Insurance bought through an Independent Financial Advisor may be protected in the case the insurance product is mis-sold. Always read the full terms of the insurance and all the exclusions.
Mortgage Payment Protection Covers
Mortgage payment protection covers your mortgage payments and other household expenses for a period of 12 or 24 months. The Insurance Purchaser is paid normally a monthly benefit due to events beyond their control such as:
· accident
· sickness
· unemployment
It is important for the Insurance Purchaser to be careful of obtaining this type of insurance from the building societies and banks, as you may be paying for a policy which is considered expensive and they may not pay out when required.
So therefore, go online on the internet and look at various providers, read their terms first, look at their premiums and also talk to your Independent Financial Advisor.
