March 20, 2017

Mortgage Payment Protection

“Mortgage Payment Protection Insurance – offers peace of mind, that your mortgage repayments will be paid if you was ever to fall ill or get injured, and unable to work”

 

If you are unable to work due to an accident, sickness or unemployment, then Mortgage Payment Protection Insurance (MPPI) may cover your mortgage repayments for upto a maximum of 12 months , cover for  upto 2 years maybe available with some insurers.

Most Mortgage Payment Protection policies normally pay out for a maximum of 1 year. If you have sufficient levels of savings then you may not require MPPI cover.

With most insurers you can choose and pick which options of cover you wish to add or remove, such as including or excluding the unemployment element of MPPI cover. If you have been employed at your place of work for several years, you are likely to receive a large payout if made redundant, therefore it is worth considering whether it is worth excluding the unemployment option from your Mortgage Payment Protection cover, as you may end up paying it unnecessarily.

It is also worth mentioning that Income Protection is not usually effected by statutory sick pay if the Income Protection benefit is short term. Any benefit payments you receive over the statutory sick pay amounts will reduce and affect the amount of MPPI payments you receive. If your MPPI payments are likely to be affected in this manner, then the best option is to take out Mortgage Payment protection on an accident and sickness cover basis only. In this way state benefits do not usually affect your benefit payments under the policy, unless maximum claim limits are exceeded.

It has become a standard practice in the Mortgage Payment Protection industry to commence benefit payments 31 days or 60 days after you were first unable to work due to accident, sickness or unemployment. But nowadays insurers are starting to pay out on a ‘back to day one basis’, which means that benefit payments are back dated and paid from the first day you became unable to work.

Exclusions

  • Redundancy was foreseeable
  • Voluntary redundancy
  • Deliberate injury
  • Childbirth
  • Pre-existing medical conditions

How I can Help

I can provide you with concise and comprehensive advice and assistance regarding all aspects of your Mortgage payment protection insurance needs, from initial advice to application stage, and all the way to completion. Having an insurance professional on hand to assist you every step of the process can save you time, effort and money, easing the stress of arranging insurance.

Please contact me today for an informal and friendly chat to discuss your needs. All initial advice is completely free and confidential. You can contact me using the “contact us” form at the top right of this Page and i’ll get back to you as soon as possible, or alternatively you can contact me via my details below, or  CLICK HERE

Thank you for visiting.

Balraj Singh (Bal)

CeMap

Email: Bal@1stcall4mortgages.co.uk

Tel: 0330 010 1433 (Mobile Friendly)

Mob: 07985 417 490