Do I Need Mortgage Payment Protection Insurance?

With Mortgage Payment Protection Insurance your monthly mortgage repayments are covered if you become unemployed, have an accident, or become sick, and this keeps you off work for 30 days or more.

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What is Mortgage Payment Protection Insurance?: Mortgage Payment Protection Insurance pays your monthly mortgage repayment if you were off work due to sickness, accident, or unemployment. (Don’t forget that your home is at risk if you fail to keep up the repayment of loans secured against it.)
Do you have to buy your Mortgage Payment Protection Insurance through your mortgage lender or mortgage broker?: No, you don’t have to buy through your mortgage lender or mortgage broker and it will almost certainly be cheaper here online.
You have a Repayment Mortgage. What sort of Life Insurance do you need?: You need Mortgage Life Insurance. Mortgage Life Insurance makes sure that the capital outstanding on your repayment mortgage would be repaid if you died.
You want to ensure that your mortgage is paid off if you were to die or become seriously ill and could not work again. What sort of life insurance do you need?: You need either Life Insurance if you have an interest only mortgage, or Mortgage Life Insurance if you have a repayment mortgage. Then you need to add Critical Illness Insurance. You can do this all in one policy.
Will your mortgage lender accept a Life Insurance policy bought online?: All your mortgage lender will want is evidence that your life is insured for the correct sum and term. A copy of your Acceptance letter will normally suffice but some lenders may want to see a copy of your policy.

This insurance will continue to pay out until you get back to work again, to a maximum of 12 months. Mortgage Payment Protection Insurance is not compulsory – however it’s a very good idea to take out a policy because if you are unexpectedly unable to meet your mortgage repayments due to no fault of your own, you will not be at risk of losing your home.

Your lender may offer this type of insurance so you can combine it with your mortgage payments, however you will probably be able to get a cheaper deal by buying it through Brokers Online.