Why would I want Mortgage Payment Protection Insurance?
It provides cover when you cannot pay your monthly mortgage
premiums through illness, accident or unemployment.
This kind of insurance means that you do not need to be
concerned about how to meet the monthly mortgage payments if you become
ill, have an accident or are unemployed. With Mortgage Payment Protection
Insurance, you can select cover for either accident and sickness, or just
unemployment. You can also opt for insurance that covers all of these
eventualities.
There is a qualifying period and you cannot claim until
this has passed. Usually it will be 28 days or 1 month. Some policies
will start paying your mortgage premiums only after that qualifying period
has been completed. However, all the policies we sell backdate the payment
to the date you started to be off work.
There will also be a maximum length of time that your mortgage
payments will be covered. This is generally 12 months. If you go back
to work before that, you will need to inform the Insurance Company and
you will once again be responsible for making the payments yourself.
This is a relatively inexpensive kind of Insurance, so given
the importance of maintaining your mortgage payments, you may well want
to think about cover.
Remember that you will be putting your home at risk if you
don’t keep up the repayment of loans secured against it.
Other relevant questions…
What
are the benefits of Critical Illness Insurance?
Is Life Insurance for me?
What else do I need to know about Life Insurance?
How do I get a Life Insurance Quote?
How do I choose the right policy for me?
What if I need cover to be arranged quickly?
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How are premiums calculated?
What if I have to make a claim?
Do I need Mortgage Life Insurance instead?
Should I consider Critical Illness cover?
What other sorts of Insurance should I think about?
How do I make a complaint?
What do I need to know about the law and Life Insurance?
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