What is Mortgage Payment Protection Insurance?

Mortgage Payment Protection Insurance pays your monthly mortgage repayment if you were off work due to sickness, an accident or unemployment (And don’t forget, your home could be at risk if you fail to keep up the payments of loans secured against it.) Basically, it is designed to remove the worry of whether you could afford your mortgage repayments if you were off work.

These policies always require you to have been off work for a minimum number of days before you can claim. This is known as the “qualifying period” and is typically 28 days or a month. With some policies the income will start after the qualifying period but more generous policies will backdate payments to the date you started to be off work.

Once you have started to claim, the insurance company will continue to pay until you are either back at work or have reached the maximum number of months the company will pay (typically 12 months), whichever event arrives soonest.

You may find you are given the option of insuring yourself for just unemployment or alternatively just sickness and accident. However, as long as you can afford it, and bearing in mind the importance of maintaining your mortgage repayments, we advise you to insure yourself for all three eventualities.

Most good financial web sites will offer you Mortgage Payment Protection Insurance.

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