What does Mortgage Protection Insurance Cover?
MPPI can be used to cover your mortgage outgoings during enforced unemployment.
MPPI is not designed to protect your repayments for the course of your entire mortgage. Most mortgage protection polices last for a maximum of one year, however a small minority pay out for two years.
You can choose the level of monthly cover you require.
Types of Mortgage Covered: Capital and interest repayment mortgages can be covered as well as other mortgage-related outgoings, ie premiums for endowment policies and household insurance.
Pensioners, smokers or those with pre-existing medical conditions are not penalised by higher premiums. All policyholders pay the exact same pro-rata premium, but pre-existing medical conditions are excluded.
If you are currently self employed, a MPPI or Mortgage Payment Protection Insurance plan will usually only pay out if you have ceased trading, as opposed to if you are experiencing a slow down in work available.