Mortgage Protection Insurance (MPPI)

How do I know if I need Mortgage Protection Insurance?

This is dependent upon several factors.

• If you have enough savings to see you through a period of unemployment or accident and sickness you may not require mortgage payment protection. This is particularly relevant if you were interested in unemployment only benefit cover and were in such work as to be confident that you could find employment quickly. Remember that those savings must pay all of your monthly outgoings and not just your mortgage.
• If your employer offers a good accident & sickness package at work, you might for instance receive a period of 2 or even 3 months full pay, you may think that a 12 month mortgage payment protection insurance to be excessive and might think about the lesser benefit periods of 3 or 6 months.

However these are personal choices but in all cases "hope for the best but prepare for the worst". Your mortgage repayments will be the most costly of your monthly outgoings and even falling behind by one month could set up a chain of debt that might be hard to break out of.