QUESTION 5:
Will I qualify for a policy if I’m self-employed?

ANSWER:
Good question. Plans go under several different names, the most common being Mortgage Payment Protection Insurance, MPPI, or Accident, Sickness and Unemployment Insurance, ASU. Whatever they are called you should read the small print carefully before signing up and the unemployment section normally needs the most attention. Contract or regular freelance workers might find they qualify for cover under some of the more flexible policies. But self-employed people may well find themselves excluded. If so you should ask for a simpler policy that just pays out if you are injured or too ill to work. The basic terms should be the same as for broader mortgage insurance but the premiums will be lower. ‘There is never any point in paying for something you don’t need and can never claim on. Ask plenty of questions to make sure your policy suits your own circumstances before taking it out,’ says Ben Stafford, head of policy at the Association of Mortgage Intermediaries. The Financial Services Authority is clamping down on advisers who sell inappropriate mortgage insurance and has produced a series of leaflets to help people get suitable cover. Call 0845 456 1555 for more details.