Mortgage Protection

Mortgage Payment Protection Insurance (MPPI) or Accident, Sickness and Unemployment (ASU)

MPPI or ASU can pay your monthly mortgage repayments should you be unable to work as a result of disability or redundancy. Policies vary in several ways such as:

• Some pay out for a maximum of 12 months, others 24 months
• Some let you claim on back problems and stress without specialist referral, most don’t
• Some have premiums that are based on age
• Some will payout from day one, others only after 30 days
• Some offer 3 or even 6 months free
• Some offer 25% extra benefit free

For these reasons and the fact that there is no online quote engine to allow you to compare premiums at a glance, please contact us and we can make you aware of the costs and options available.

For Mortgage Payment Protection Insurance / Accident, Sickness & Unemployment Cover we useually offer products from a selected panel of providers.

Things To Consider

When getting quotes for mortgage related life insurance, critical illness protection or death or earlier critical illness cover, many quote engines will assume the entire balance relates to a repayment mortgage. Therefore the benefit amount or sum assured will decrease in line with a decreasing mortgage balance.

If you mortgage includes any amount that is not repayment (such as part interest only), a decreasing term policy will not be suitable to protect the balance.

If you choose a decreasing term policy that is shorter than the actual term of the mortgage, there will be a shortfall in the event of a claim.

Do I Need To Protect More Than Just My Mortgage?

The simplest way to ascertain what insurance cover you need is to calculate your current committed outgoings and consider what the financial impact would be if you were to suffer a ‘claimable event’.

To illustrate, lets take the example of a family man who has a life insurance policy to protect a mortgage. In the event of his death his mortgage is cleared following the payout, but can his family afford to live in the family home, even though it’s now mortgage free? Where will the funds come from for the other day-to-day living costs?

Let’s look at another example of a single working woman with a mortgage who is diagnosed with a critical illness. Her prognosis is good and with surgery and treatment she is likely to be back to work within 2 years. She claims on her critical illness policy designed to clear her mortgage but what about her other monthly expenses while she is unable to draw an income?

Here are some ways protection insurance can help if the worst happens. In the event of death:

• Pay part or all of an outstanding mortgage
• Provide a lump sum for dependants
• Pay a monthly income to a partner for a specified number of years
• Provide a income to children until they have left full-time education
• Pay for funeral expenses

In the event of diagnosis of a critical illness:

• Pay part or all of an outstanding mortgage
• Pay an income for a specified number of years
• Pay for private health care rather than have to wait for NHS treatment
• Pay for medication not available through local Primary Care Trust
• Pay for pioneering treatment available in another country
• Fund retraining if you are able to return to work but not your previous occupation
• Provide finances for alterations to home and or vehicle
• Pay for nursing care

These are just a few examples of how insurance cover can help you financially when you need it the most.

Please use our free online quote system for as many comparison quotes as you like or contact us if you require any advice.