Why is Age-Related Mortgage Payment Protection Insurance (MPPI) Different From Other MPPI?

Age Related Mortgage Payment Protection Insurance

Age-related mortgage payment protection insurance has flexible premiums that are dependent on the age of the applicants. Instead of having flat premiums, as other products do, the premiums are calculated according to the age of the customers. This means that younger customers, in particular, can make large savings on their premiums. According to figures released by the Council of Mortgage Lenders (CML), 18-24-year-olds could save around 35%, 25-29-year-olds 25% and 30-34-year-olds 15%. In fact, anyone who is under the age of 50 will have lower premiums than those for standard mortgage payment protection insurance. There are two main reasons for this. The first is that, in general, younger people are less likely to suffer from long-term health problems. Also, if a younger person loses their job it is likely to take them a shorter length of time to find new employment than someone who is over 50.

Why Choose British Insurance for your Age-Related Mortgage Payment Protection Insurance?

British Insurance is an award-winning provider of payment protection insurance. They consistently appear at the top of many of the mortgage industry's best buy surveys, and won the Mortgage Magazine 'Best Insurance Broker 2006 ' Award. British Insurance Ltd has also received glowing reviews for their products in the National press. Recommendations have also appeared in The Mail on Sunday, The Sunday Telegraph, The Daily Mail, The Daily Mirror, and numerous consumer money and mortgage insurance publications. Consumer television programmes, including 'Tonight' with Trevor McDonald, and the BBC's 'Money Programme' have also stated that British Insurance products offer great value. Unlike many other providers they pay out after only 30 days, and your payments are backdated to day one of the period that you are claiming for. Other companies will not pay out until after a 60-day exclusion period. There are a number of different cover options available, and premiums start from as low as £2.15 per £100 of monthly benefit. This is less than half the premiums of standard mortgage payment protection insurance. Further details, and an instant quote service, are available on the British Insurance website.

When can home seller cancel deal?

Editor's note: Robert Bruss is temporarily away. The following column from Bruss' "Best of" collection first appeared Sunday, March 26, 2006.

DEAR BOB: I had a contract to sell my home. I gave the buyer seven days to bring me an acceptable mortgage letter from a bank, but he presented a letter from a mortgage broker indicating final approval of his loan was subject to "underwriting." His bank returned his $1,000 deposit check for insufficient funds. Can I legally terminate his contract? --Jorge S.

DEAR JORGE: From your description, it sounds like your buyer is in breach of the sales contract. That letter from a mortgage broker indicating his mortgage approval is subject to "underwriting" is worthless.

Purchase Bob Bruss online.

Today's smart home buyers get preapproved in writing by an actual lender before shopping for a home. If your buyer had done that and shown you the lender's approval letter or certificate, you could feel confident he'd obtain a mortgage.

Although mortgage brokers can obtain such preapprovals for their borrowers, because they are not the actual lenders, mortgage brokers can issue only prequalification letters, which are nonbinding on actual lenders.

Especially because your buyer's $1,000 deposit check bounced, if I were in your shoes, I would feel confident canceling that sale for breach of contract. For full details, please consult a local real estate attorney.

ANOTHER DISADVANTAGE OF GIFTING A PROPERTY BEFORE DEATH

DEAR BOB: In a recent article, you answered a widow's question about gifting her property to her daughter and son-in-law. But one tax consequence you failed to mention, which snares many people, is the fact that by gifting real estate before death to a child, the child loses the opportunity to receive a stepped-up basis to market value upon the donor's death --Tim F.

DEAR TIM: Shame on me. How could I have forgotten that major benefit of inheriting real estate instead of receiving it as a gift before death?

A big disadvantage of a property gift is the donee takes over the donor's adjusted cost basis. In the situation you describe, the mother presumably had a very low cost basis if she owned the property for many years. The gift donee takes over that low basis.

However, when real estate or other assets are instead inherited, the heir receives title by inheritance with a new stepped-up basis of market value on the date of the decedent's death. For more details, please consult your tax adviser.

MUST HOMEOWNER FORM A CORPORATION TO RENT A HOUSE?

DEAR BOB: Do I need to form a corporation to rent my single-family house as an investment property? My son says "yes." --Christina K.

DEAR CHRISTINA: I'm sure your son is a fine young man, but he is mistaken on this issue. Landlords do not need to form a corporation before they can rent their property to tenants.

Millions of property owners rent real estate to which they hold title in their own names without forming a corporation. Perhaps your son was thinking that forming a corporation to hold title to the rental house would limit your liability.

But forming a corporation is not necessary. Nor is it a good idea, especially because holding title in a corporate name forfeits your rental property income tax benefits.

However, before renting that house to tenants, please consult your insurance agent to be certain you have adequate liability insurance. You need a rental property owner's insurance policy, not a homeowner's insurance policy. With adequate liability insurance, you can rest easy and forget about all the drawbacks of owning corporate real estate. For more details, please consult a local real estate or tax attorney.

The new Robert Bruss special report, "How to Sell Your House or Condo for Top Dollar With or Without a Real Estate Agent," is now available for $5 from Robert Bruss, 251 Park Road, Burlingame, Calif., 94010, or by credit card at 1-800-736-1736 or instant Internet delivery at . Questions for this column are welcome at either address.

(For more information on Bob Bruss publications, visit his ).