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Assurant warns of MPPI overpayment

Clients with mortgage payment protection insurance may be overpaying as a result of the low interest rate environment, warns Assurant Solutions Intermediary.

The general insurance provider says that clients could make a saving by changing their monthly premiums to reflect lower mortgage payments.

Kevin Paterson, sales and marketing director at Assurant Solutions Intermediary, says clients on trackers deals have seen their mortgage payment go down by “literally hundreds of pounds in some instances.”

He says: “As MPPI premiums are quoted based on every £100 of cover required, this could mean that some clients are paying over the odds.”

The company says that clients could make save at least 35% on their original MPPI premiums by updating their policies.

Based on a premium covering a £175,000 repayment mortgage with comprehensive Accident, Sickness and Unemployment insurance and calculated at a 3% interest rate, customers could see their monthly premium fall from £61 to £39.40.

Paterson adds: “Right now, everyone is looking closely at their household budgets and many could well be tempted to cancel some of their insurance covers to cut costs.

“Brokers could help clients keep their safety net while saving them money at the same time.”


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