What does a mortgage payment protection policy cover?
There are varying levels of mortgage payment protection insurance available, depending on what you want to be covered for.
Accident And Sickness
This will cover your mortgage repayments should you fall sick or have an accident which means you are unable to work. It will not pay out if you lose your job.
Unemployment
This will cover your mortgage repayments if you lose your job by being made redundant. It does not pay out in the event of sickness or accident.
How much will my policy pay out?
You can choose how much you want your policy to pay out every month – you may decide to build in a buffer over and above your mortgage repayments to cover bills and other expenses. However, providers usually set monthly upper limits of between £1,500 and £2,000. If your claim is successful, you will need to wait between 30 and 180 days for it to pay out, while short-term policies only provide 12 months’ benefit. In this case, make sure you consider other options before taking MPPI, such as using your savings to tide you over until you can start working again.
Do I need mortgage payment protection insurance?
Your mortgage is likely to be one of if not the biggest expenditure of your household, and it’s important to keep up with all your repayments or you risk losing your home. However accidents do happen and sometimes life doesn’t always go to plan – which is where a mortgage payment protection policy can step in to help.
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Your mortgage payment protection insurance premiums will depend on a number of factors, including:
Your Salary
Your Borrowing Icon
The size of your mortgage repayments
