Protect your home with mortgage payment protection insurance

If you were unexpectedly made redundant, or you were struck down with an extended illness or accident, how on earth would you pay your mortgage? It is a frightening though. However, the good news is that there is an affordable way to protect your home against the unforeseen.

Mortgage payment protection insurance – or MPPI – provides a pre-agreed amount every month for 12 -24 months, depending on your provider, which helps you service your mortgage repayments. It’s a simple but very valuable insurance that can stop any financial worries at an otherwise stressful time. It will also be paid each month as tax free payments.

This income come mean the difference between you falling into arrears with your mortgage repayments or keeping them up to date so it can be a financial lifeline.

How long would I have to wait before claiming?

Policy features can vary, but policies can start to pay out typically anywhere from 30 – 90 days after you are made unemployed or become incapacitated.

When taking out mortgage insurance you are doing so to ensure that you would have an income that would stop you from falling behind on your repayments. Therefore you would have to consider that you could be in mortgage arrears by 3 months if you have to wait for 90 days before seeing any money.

Do take note that the protection will cease providing you with your income when the term (either 12 or 24 months) had been reached regardless of whether you had found work or recovered. If you lucky enough to recover or find new work within the policy pay out period, then benefits will stop.

Choosing what you want to protect against

While you can take out mortgage payment protection to insure against becoming unemployed or incapacitated you could also choose to tailor the policy to suit your individual needs. For example, you might just want to cover the chance of becoming a victim of involuntary redundancy. You could take this out as a standalone policy if your employer paid you a good sick pay plan. You might alternatively choose just to take protection for incapacity alone if this suited your lifestyle better.

The events you chose to protect against would go towards setting the monthly premiums so you would only have to pay for insurance that is needed.

As you can see, the benefits of mortgage payment protection insurance are invaluable. And with many standalone providers offering comprehensive cover in the PPI marketplace, covering your mortgage repayments has never been cheaper.