Will the Mortgage Payment Protection Insurance pay your interest and capital?

You decide how much you want the insurance to pay out each month if you’re off work. So make sure your cover is sufficient to meet your full monthly repayment to your mortgage provider.

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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: -
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.
You have an Interest Only Mortgage. What sort of Life Insurance do you need?
You need normal, level cover, Life Insurance.
When would normal Life Insurance be used in connection with a mortgage?
Term Insurance is another name for Life Insurance. Normal Life Insurance is used if you have an interest only mortgage.
Mortgage Payment Protection Insurance is very simple. You decide how much you want the insurance to pay each month. It doesn’t matter whether you have a Repayment Mortgage or an Interest Only Mortgage, the insurance pays the sum you decided to insure for.

We suggest that you check how much your mortgage repayments are each month and if you have a variable interest rate, add a bit more just in case interest rates rise.

Mortgage Payment Protection Insurance is only designed to replace lost income and meet your monthly mortgage repayments for up to 12 months. Mortgage Payment Protection Insurance will not repay the capital to your mortgage lender if you were to die or become critically ill or unable to ever work again. You need Life Insurance to cover you in case you were to die and Critical Illness Cover in case you became critically ill or unable to ever work again.

Frequently Asked Questions related to the above topic.
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