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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.
All insurance payments are tax-free.
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.
- How much should you insure for?
- The rate you pay is charged per Ł100 of income you need. So, you should insure for the next Ł100 above the cost of your monthly mortgage repayment.
- What is Mortgage Life Insurance?
- Mortgage Life Insurance is sometimes called Mortgage Protection 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.
As a result of this, the government is trying to work with the Council of Mortgage Lenders to encourage all people to take out Mortgage Payment Protection Insurance for those first nine months when they wouldn’t be able to claim benefits.
And if you are one of the “lucky” ones who qualafies for a state payout, basic sick pay and Incapacity Benefit will provide around £65 a week for the first year and £72 a week thereafter. Could you make ends meet with that?
Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -
- What is Mortgage Payment Protection Insurance?
- What is Mortgage Payment Protection Insurance?
- Is Mortgage Payment Protection Insurance the same as a Mortgage Insurance Guarantee?
- How much will it cost?
- Will Mortgage Payment Protection Insurance pay out immediately you make a claim?
- 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 your mortgage?
- Should you insure for accident and sickness or accident, sickness and unemployment?
- Will a claim under a Mortgage Payment Protection policy affect any State benefits to which you may be entitled?
- Do I need mortgage payment protection insurance ?