Is Mortgage Payment Protection Insurance the same as a Mortgage Insurance Guarantee?

No. Mortgage Payment Protection Insurance is totally different to a Mortgage Insurance Guarantee.

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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.)
Is Mortgage Payment Protection Insurance the same as a Mortgage Insurance Guarantee?
No. Mortgage Payment Protection Insurance is totally different to a Mortgage Insurance Guarantee.
Is there any investment value in your policy?
No. Once the policy has come to the end of its term the policy simply ends. It’s a bit like house insurance!
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.
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.
Please do not confuse Mortgage Payment Protection Insurance and a Mortgage Insurance Guarantee because they are very different!

Mortgage Payment Protection Insurance pays your monthly mortgage repayment if you were off work due to sickness, accident, or unemployment.

Mortgage Insurance Guarantee (MIG) is an insurance you pay if you have borrowed over 90% of the value of your house. It repays the capital you borrowed directly to your mortgage lender if you were to default on your mortgage. In that context it is there to protect the lender and not you!

It is important to understand that MIG does not remove your liability to repay the money outstanding to your mortgage lender – they will still pursue you for the money outstanding whether or not they have been able to claim under a Mortgage Insurance Guarantee.

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