Mortgage Protection
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Mortgage Protection
Protect your monthly mortgage payment against unemployment, sickness, accident and disability. If you were unexpectedly made redundant, injured or diagnosed with an illness that keeps you off work for months, would you be able to rely on your savings to meet your monthly mortgage repayments? The benefits provided by the state have been reduced since the last recession. Most homeowners who have a full time working partner or savings totalling over £8,000 will not receive any assistance from the state. Those who are eligible for state support will not get help on capital repayments. They will receive assistance with interest payments of up to £100,000. However, this not is available for the first nine months for those who took out their mortgage after October 1995.If you work in the UK, you can take out Mortgage Payment Protection Insurance (MPPI) to protect you against the consequences of involuntarily losing your income.What does Mortgage Payment Protection Insurance (MPPI) Cover?MPPI can be used to cover your mortgage outgoings during enforced unemployment. It is not designed to protect your repayments over the course of your entire mortgage. Most polices last for a maximum of one year but a small minority of polices pay out for two years. Homeowners can choose the level of monthly cover they require. Capital and interest repayments can be covered as well as other mortgage-related outgoings such as premiums for endowment policies and household insurance. Older homeowners, smokers or those with pre-existing medical conditions are not penalised by higher premiums. All policyholders pay the same pro-rata premium but pre-existing medical conditions are excluded.If you are self employed, Mortgage Payment Protection Insurance will usually only pay out if you have ceased trading altogether as opposed to if you are experiencing a 'quiet patch'.The exclusions: Mortgage Payment Protection Insurance will not pay out if: You knew you were going to make a claim when you took out the policy You voluntarily leave work or as a result of fraud, dishonesty or misconduct, You suffer from 'pre-existing' medical conditions, You have mild stress or back related conditions ,You suffer from a long-tem condition from which there is no realistic chance of recovery.
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