What is Mortgage Payment Protection Insurance?

• Insurance that will pay your monthly mortgage repayments if you are off work due to illness, accident or unemployment.

Basically, Mortgage Payment Protection Insurance is designed to remove the worry of whether you could afford your mortgage repayments if you were off work. It will cover your monthly mortgage repayment if you are off work for various reasons. You can select whether you wish to insure yourself for just accident and sickness, or just unemployment, or all three.

The policy requires you to have been off work for a minimum number of days before you can claim and this is known as the “qualifying period”. It is usually 28 days or a month. With some Mortgage Payment Protection policies the mortgage payments will start after the qualifying period but the better policies will backdate payments to the day you started to be off work.

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

The premiums for Mortgage Payment Protection are relatively modest, so bearing in mind the importance of keeping up your mortgage repayments, we advise you to insure yourself for all three.

Don’t forget that your home is at risk if you fail to keep up the repayment of loans secured against it.

Please note : The information contained within the FAQ section has been written by Mortgage Protected Online

Related Questions:

I want to make sure that my monthly mortgage repayments are paid for me if I’m off work due to sickness, accident or unemployment.