What is Mortgage Payment Protection Insurance (MPPI)?

Mortgage Payment Protection Insurance, also known as Accident, Sickness and Unemployment cover, provides cover for your mortgage and other directly related monthly expenses if you are unable to work through sickness, injury or if you involuntarily become unemployed.

What are the benefits of Mortgage Payment Protection Insurance?

If sickness, injury or involuntary unemployment means you will have difficulty meeting your mortgage obligations, MPPI, after a waiting period, pays a monthly benefit until you either return work or a maximum period is reached. The maximum period and the waiting period depend on the specific MPPI policy.

How much are the premiums?

The monthly premiums for Mortgage Payment Protection Insurance are calculated at a fixed rate per £100 of benefit required. The premiums do not vary according to age, health or occupation, but depend on i) how much benefit you want paid (although the provider will specify a maximum); ii) the type of cover you want; iii) the waiting period you want; iv) the maximum payment period required.

Are there any exclusions?

Yes there are, and you must make careful consideration of these if you are considering Mortgage Payment Protection Insurance. General exclusions are:

Pre-existing medical conditions, Normal pregnancy, Backache, Stress, Temporary or seasonal workers, Contract work, Voluntary unemployment, Early retirement, Disciplinary action/misconduct