FAQ Home | General Questions | Critical Illness Insurance | Life Insurance | Home and Contents
Mortgage Payment Protection | Mortgage Life Insurance | Short Term Income Protection Insurance
Mortgages | Car Insurance | loans | Private Medical Insurance | Travel Insurance
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.
Hot Topics
- 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.
- 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 have an Interest Only Mortgage. What sort of Life Insurance do you need?
- You need normal, level cover, Life Insurance.
- How Much Should You Insure For?
- For mortgage protection purposes the initial sum insured must always equal the capital sum outstanding on your mortgage. You should also insure yourself for the same number of years that are remaining on your mortgage.
- How long should you insure for?
- For mortgage protection purposes you should also insure yourself for the same number of years that are remaining on your mortgage. The initial sum insured should always equal the capital sum outstanding on your mortgage.
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.
Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -
- How much will it cost?
- Will Mortgage Payment Protection Insurance pay out immediately you make a claim?
- Are there any situations that would result in your claim being refused?
- You want a lump sum if you were to die or become very seriously ill and could not work again. What sort of insurance do you need?
- How much should you insure for?
- How long should you insure for?
- For how long will the policy continue to pay my mortgage?
- Should you insure for accident and sickness or accident, sickness and unemployment?
- Do you have to buy your Mortgage Payment Protection Insurance through your mortgage lender or mortgage broker?
- Do I Need Mortgage Payment Protection Insurance?
- Is there any investment value ?
- 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?
- Will a claim under a Mortgage Payment Protection policy affect any State benefits to which you may be entitled?
- Go to menu of Frequently asked Questions about Mortgage Payment Protection Insurance
- Go to menu of Frequently asked Questions about Critical Illness Insurance
- Go to menu of Frequently asked Questions about Life Insurance
- Go to menu of Frequently asked Questions about Critical Illness Insurance