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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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 long should I insure for?
It makes sense to keep the insurance in place for as long as you have a mortgage.
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.
You want to ensure that your mortgage is paid off if you were to die or become seriously ill and could not work again. What sort of life insurance do you need?
You need either Life Insurance if you have an interest only mortgage, or Mortgage Life Insurance if you have a repayment mortgage. Then you need to add Critical Illness Insurance. You can do this all in one policy.
Should you have a “Guaranteed” or a “Reviewable” policy?
A Guaranteed policy is usually better value overall but a Reviewable policy will be cheaper at the outset.
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.

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