When considering a mortgage payment insurance you have to give your personal circumstances some very serious thought. No doubt you are aware of the benefits of this insurance – cover can be taken out to safeguard against the possibility of you becoming unable to work due to suffering an illness, an accident or through unexpected redundancy.

Should find yourself in this situation, a mortgage payment insurance policy would begin to provide you with a tax free income monthly income for up to 12 and 24 months, which is usually long enough for you to recover or find employment. This sum will help towards your mortgage repayments as well as any associated costs such as home insurance.

However, the insurance is not suitable for everyone. This is because of exclusions within the policy which could mean you would not be eligible to claim. Exclusions which are frequent to the majority of policies include being retired, self-employed, suffering an illness or working part time.

While these are just the most universal providers can put in others. Studying the terms and conditions is one of the most important parts of any policy. It does not matter how low the premiums are for the cover if your circumstances mean you would not be eligible to claim. Not only can the exclusions be found in the terms and conditions but also when it would begin and end.

It is the lack of information regarding the cover that has led to many problems associated with mis-selling of cover and this is especially so when it comes to taking out a policy alongside the mortgage.

Mortgage payment insurance has earned itself a bad reputation with high priced products that have been sold often with little information given at the time of buying. In 2005 the Office of Fair Trading (OFT) received a super complaint from the Citizens Advice which led to an ongoing investigation by the Financial Services Authority and the OFT. The sector was referred for an in depth review to the Competition Commission and their findings should be released early 2009.

And while some changes have been seen for the better it is apparent by the fact that over 4,000 cases of mis-selling were investigated in 2007 that many more need to be made in the future.

One of the latest companies to receive a fine was a mortgage firm with not only them receiving a fine but the Chief Executive too, who had to pay a personal fine. This is the first time a personal fine has been handed out, although several firms have received company fines since the investigation began. However the Financial Services Authority insists it will not be the last if bosses continue to allow mis-selling and not improve their sales techniques.

If you want a quality mortgage payment insurance product, then do your homework. Shop around among the standalone providers and compare not only premiums, but the terms and conditions too. That way you can ensure you get the protection you need at a price within your budget.