Mortgage Payment Protection Insurance | MPPI
Article published on 24th September 2007
Mortgage Payment Protection Insurance or MPPI is an insurance policy that can help you make your mortgage payments if you are unable to work due to accident, sickness or redundancy.
Where to Buy Mortgage Payment Protection Insurance
There are numerous companies that offer Mortgage Payment Protection Insurance and as independent brokers Top Quote UK can offer advice on which companies provide the best features and prices for you individual situation.
It is possible to take our Mortgage Payment Protection Insurance through your bank, building society or mortgage provider but from our experience, it is nearly always more expensive to do it this way.
Types of Mortgage Payment Protection Insurance
Mortgage Payment Protection Insurance is usually bought to provide one of three forms of cover:
- Accident and Sickness Cover
- Redundancy Cover
- Accident, Sickness and Redundancy Cover
When Mortgage Payment Protection policies are taken out to cover accident and sickness, the policy will basically pay out if your doctor signs you off from work due to disability or sickness.
If your Mortgage Payment Protection policy is taken out to cover redundancy the policy will pay out if you become redundant from you current employment.
Exclusions on Mortgage Payment Protection Insurance
Most Mortgage Payment Protection plans come with some basic exclusions however these differ between providers. Most, if not all contract will exclude any ailments arising from any conditions that you have suffered from in the last 12 months. Some contracts have basic exclusions such as stress/depression and drug/alcohol abuse, however each policy differs and we recommend consulting one of our financial advisors before taking out a policy.
Claiming on a Mortgage Payment Protection Policy
Mortgage Payment Protection plans often come with deferment periods and/or waiting periods. These dictate the amount of time that you must wait before you become eligible for a claim. Usual deferment periods are:
- 30 days off work but upon which payments will backdated to day 1.
- 60 days off work but upon which payments will backdated to day 30.
- 90 days off work but upon which payments will backdated to day 60.
- 180 days off work but upon which payments will backdated to day 90.
Most people opt for a shorter deferment period however it is possible to reduce costs by increasing you deferment period.
Redundancy cover works on the same basis but usually comes with a standard waiting period at the start of the policy. This indicates the amount of time that you have to have policy in force for before you can become eligible to claim.
In order to get an instant quote for mortgage payment protection insurance, please visit our Mortgage Payment Protection Quote page, or please feel free to contact one of our friendly advisors for financial advice on Mortgage Payment Protection Insurance free on 0808 17 82 777.