Mortgage protection insurance

Mortgage payment protection insurance (MPPI) is a type of insurance product designed to ensure that an individual's mortgage payments are covered in the event that the policyholder is unable to pay.

Most MPPI policies cover unemployment, accidents and sickness and will guarantee payments for a period of 12 to 24 months (although some will be less than that). The amount paid to cover mortgage payments will be a tax-free monthly lump sum. Some policies may also cover other kinds of regular outgoings such as bills.

Policies also tend to have payment limits, so those individuals with high regular mortgage repayments may not be able to cover the whole of their payments.
Waiting periods

The waiting period is the amount of time between a claim being made on the policy and the covering payments beginning.

This may also be known as the excess period or deferral period.

Typically, waiting periods for MPPI policies can range anywhere between 30 and 180 days.

If you are entitled to redundancy you may want to choose a longer waiting period in order to secure lower premiums.

Contact us to talk about protection for you and your family.