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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.
What is Mortgage Life Insurance?
Mortgage Life Insurance is sometimes called Mortgage Protection Insurance.
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!
Will you have to pay a fee to your mortgage lender if you don’t buy your Life Insurance through them?
No! By law mortgage lenders are not allowed to charge a fee if you choose to shop elsewhere.

Why should you have Mortgage Payment Protection Insurance?

Your home is at risk if you fail to keep up the repayment of loans secured against it.

When you take out a mortgage you are committing yourself to meeting the monthly repayments and paying back the capital you borrowed. Most people take out their mortgage for many years, typically 20 or 25 years, and during that time there are certain to be changes in their financial circumstances.

We all hope that as the years go by, your finances become stronger but what would happen if you were off work? Would you have enough put by to continue paying the mortgage? Because if you don’t your home is at risk.

We think it makes sense to put these worries behind you by taking out insurance that continue to pay your monthly mortgage payments if you were off work. When you’re well settled in your job and healthy, the idea of spending money like this may seem unnecessary even unwelcome. But as we all know and often choose to ignore, things can change quickly.

Consider the following: -

  • Over the last five years 28 % of people have been off work for more than a month due to illness or accident.
  • Over the last five years 9 % of people have been off work for more than 3 months due to illness or accident.
  • One in three people aged between 25 and 34 have experienced unemployment for more than a month.
  • Every day 500 people in the United Kingdom become unemployed and 60% of unemployed men and 45% of unemployed women will be out of work for six months or more.
  • Around 80 homes are repossessed every day. The majority of such repossessions being largely due to unemployment.

We say - better safe than sorry! Take out Mortgage Payment Protection Insurance!

Frequently Asked Questions related to the above topic.
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