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.

Hot Topics

Will Mortgage Payment Protection Insurance pay out immediately you make a claim?: As long as you are off work for 30 days - you can then make your claim.
Will a claim under a Mortgage Payment Protection policy affect any State benefits to which you may be entitled?: No. Whilst you are using Mortgage Payment Protection Insurance to replace your income and meet your monthly mortgage repayments, insurance payouts do not qualify as income in the eyes of the Benefits Agency or the Inland Revenue.
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.
Should I include Terminal Illness Insurance?: Terminal Illness Insurance is generally included at no extra cost on all Mortgage Life, Life and Critical Illness policies.

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.