What is Mortgage Payment Protection Insurance?

Mortgage Payment Protection Insurance pays your monthly mortgage repayment if you were off work due to sickness, accident, or unemployment. (Don’t forget that your home is at risk if you fail to keep up the repayment of loans secured against it.)

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What is Mortgage Payment Protection Insurance?
Mortgage Payment Protection Insurance pays your monthly mortgage repayment if you were off work due to sickness, accident, or unemployment. (Don’t forget that your home is at risk if you fail to keep up the repayment of loans secured against it.)
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: -
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.
How much should you insure for?
The rate you pay is charged per £100 of income you need. So, you should insure for the next £100 above the cost of your monthly mortgage repayment.
Should you insure for accident and sickness or accident, sickness and unemployment?
The Mortgage Payment Protection policies we offer gives you the option of insuring yourself for:
Basically, Mortgage Payment Protection Insurance is designed to remove the worry of whether you could afford your mortgage repayments if you were unable to work.

To claim you have to be off work for a minimum number of days. This is known as the “qualifying period” and is usually 28 days or a month. With some Mortgage Payment Protection policies the mortgage payments will start after the qualifying period but with the policies we sell, the payment will be backdated to the day you started to be off work.

Once you have started to claim, the policy will pay your mortgage until you are either back at work or have reached the maximum number of months the policy will pay out (typically 12 months), which ever arrives soonest.

The Mortgage Payment Protection policies offered through our Product Partner, Burgesses give you the option of insuring yourself for accident and sickness, or just unemployment, or all three. The premiums are cheap so as long as you can afford them, and bearing in mind the importance of keeping up your mortgage repayments, most people insure themselves for all three eventualities.

All payments from insurance policies are tax-free.

Frequently Asked Questions related to the above topic.
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