MORTGAGE PAYMENT PROTECTION INSURANCE
Instant Online Quotes & Apply
RATED 5 STARS ON TRUST PILOT
Call Us 020 71128844
What is Mortgage Payment Protection Insurance?
If you are in the process of taking out a mortgage to buy a new home, you might have heard about something called mortgage payment protection insurance. This is a very specific type of insurance cover that will pay out so that you can keep on paying off your mortgage in the event that you are ever too unwell to work.
For most people, their monthly mortgage repayments are probably their biggest outgoing cost each month. If they were to unexpectedly lose their job or need to take a substantial length of time off work because of illness or injury, they might struggle to meet these repayments. If they miss some of their mortgage repayments, they could be at risk of losing their home. This is something that a lot of homeowners fear, especially these days as the value of houses is so high that they might be repaying large amounts each month.
Thankfully, this is where this insurance can really help. If you take out this kind of cover and do end up losing your job or falling ill, the insurance will pay out to cover your mortgage repayments. So, you will be able to enjoy the peace of mind that comes with knowing your home is safe even if you do lose your regular income very unexpectedly.
Start with My Key Man Insurance
What are the different types of MPPI?
There are a a few different types of mortgage payment protection insurances that you should be aware of. You will need to consider them each to ensure that you take out the one that is the best kind for you and your individual situation.
One of the common forms of mortgage payment protection insurance only covers unemployment. So, if you have this policy, your provider will only take over your mortgage payments if you lose your job from redundancy. This form of cover doesn’t cover you if you have to stop working due to any health conditions, so you should carefully consider whether you do want to go with this type of policy.
The second type of mortgage payment protection does actually cover you if you can no longer work because of an illness or injuries. So, this one will pay out if you do need to stop working because of a long-term illness or end up suffering a serious injury in an accident. One thing that this does not cover, though, is losing your job because of redundancy.
With the above two options, you will need to weigh up whether it is better for you to have some cover for either the chance of redundancy or a serious health condition. If you don’t want to choose between the two, there is still one other option – you could go for a complete mortgage payment protection insurance policy that will cover you in both instances. As these kinds of covers will protect you in both situations, they are the premiums for them are likely to be slightly higher than the other two policies.
Mortgage Payment Protection Insurance FAQ
These days, there are so many workers and employees taking time off to address their mental health needs. As society becomes more understanding of these kinds of health issues, a lot more people are realising that this is a serious health concern that needs to be addressed with plenty of treatment and recovery. So, there is no wonder that so many people now ask whether their insurance will cover taking time off because of mental health issues. Unfortunately, these kinds of issues are not yet covered by these insurance policies. Many workers with this kind of insurance often struggle to show that they are unable to work as a result of their mental health. Do you think that taking out some mortgage payment protection insurance is the right course of action for you? If so, then get in touch with us today. We will be able to assess your individual situation and will let you know the best kind of policy for you. We are looking forward to taking your call and offering you our professional guidance!
Most of the time, the policy will only pay you from the day that you claim. This means that if you have already missed a couple of months’ worth of income before you put in a claim to your insurance provider, you probably won’t be paid for those months. That’s because they occurred before you put your claim in. However, there might be one option that allows you to claim for lost income before you did claim. You will just need to find a back to day one policy. Even though these policies tend to be quite a bit more expensive than standard ones, you will find that these cover any missed income that you incurred before you made a claim on your insurance. Don’t forget that all policies will pay in arrears. So, you might need to wait one month to receive a payout after you do actually put in a claim. For some policies, it might not matter if you do have a waiting period – you will still be paid for the time that you did wait.
You probably won’t be covered as soon as you take out a new policy. Most people who do take out a new policy will have to wait a set number of months before the cover actually starts. Unfortunately, during these months during which you are waiting for the cover to start, you won’t be able to claim a penny. This is what is known as the exclusion period. You might also hear this referred to as the “buffer period”. Most of the time, this exclusion period is anywhere between 30 and 180 days long, just like the excess period. Generally speaking, unemployment cover will have a longer exclusion period than cover for sickness and injury. That is to stop people taking out the insurance if they know that they will be made unemployed or redundant in the very near future.
There are a lot of different factors that will be used by the insurance provider to decide on exactly how much your mortgage payment protection will cost. As mentioned before, though, the policies that cover both redundancy and health issues tend to be a lot more expensive than policies that only cover one or the other. The factors that insurance providers use to decide on your quote normally include things like your age and how much your current monthly mortgage repayments are. Some providers might also consider the job that you currently do as well. Not only that, though, but one other factor that is sometimes taken into consideration is your current financial situation and how many savings you have at the minute. Generally speaking, though, your mortgage repayments won’t be too expensive as they are usually a small percentage of the average monthly wage. For instance, the average monthly quote for a monthly premium for both redundancy and health cover is around £19.27 for a 30 year old. This average price slowly rises the older the policy holder is, though. For instance, it increases to £23.55 for 40 year olds and then to £24.14 for 50 year olds.
How it works
Submit the details of the key people
Compare the quotes online
Fill out the application and get covered today.
5 Reasons You Should Take Out Relevant Life Insurance
Relevant life insurance is a type of life insurance policy that is taken out by businesses on behalf of their employees
Relevant Life Insurance HMRC Tax Treatment (updated) 2022
Relevant life insurance is a form of insurance that provides financial protection for an individual.
Relevant Life Insurance Calculator
Work out how much money you can save with our relevant life calculator. Our calculator
UK’s Number One Business Protection Specialist.