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.

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How Much Will It Cost?
You can have Mortgage Payment Protection Insurance for either unemployment alone, sickness and accident, or all three. The costs of the policies we sell are as follows: -
What is Mortgage Life Insurance?
Mortgage Life Insurance is sometimes called Mortgage Protection Insurance.
What happens if you need cover quickly in order to complete a house purchase?
You need to take action now. Complete the quotation form now and within 24 hours ClickLife will phone and sort everyting out for you.
Can you keep your Life policy on if you pay your mortgage off early?
As far as the insurance company is concerned, until your policy reaches the end of its term and you continue to pay the premiums, you remain insured.
Will your mortgage lender accept a Life Insurance policy bought online?
All your mortgage lender will want is evidence that your life is insured for the correct sum and term. A copy of your Acceptance letter will normally suffice but some lenders may want to see a copy of your policy.
One of the main reasons for purchasing Mortgage Payment Protection Insurance is the long-term trend of the reduction in state benefits. Did you know that, if you become ill, suffer a serious injury, or are unemployed, it’s nine months before you can qualify for state help with your mortgage repayments and then, for your claim to be valid, you must first qualify for income support. Then, even if you do qualify, there is a chance that you won’t receive the full amount of your mortgage repayment.

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.
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