Should you insure for accident and sickness or accident, sickness and unemployment?

The Mortgage Payment Protection policies we offer gives you the option of insuring yourself for:

  • Disability (that’s accident and sickness)
  • or just unemployment
  • or disability and unemployment

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How much should you insure for?
The rate you pay is charged per £100 of income you need. So, you should insure for the next £100 above the cost of your monthly mortgage repayment.
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.
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!
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.)
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.
The premiums are very reasonable so as long as you can afford it, and bearing in mind the importance of keeping up your mortgage repayments, it’s best to insure yourself for all eventualities.

Consider the following:

  • Over the last five years illness or accident has caused 28 % of people to have been off work for more than a month.
  • Over the last five years illness or accident has caused 9 % of people to have been off work for more than 3 months.
  • Between the ages of 25 and 34, one in three people have experienced unemployment for more than a month.
  • In the UK 500 people become unemployed each day. 60% of unemployed men and 45% of unemployed women will be out of work for six months or more.
  • The homes of around 80 families are repossessed every day. Most of these repossessions are largely due to unemployment.

Frequently Asked Questions related to the above topic.
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