Mortgage Protection Insurance (MPPI)

What are the main points to look for when buying mortgage protection policy?

There are many options to buying a mortgage protection policy and the choice of each option will depend on your own personal circumstances.

• Age banding: This means that the cost of the premium will vary according to your age, usually the younger you are the cheaper it is.
• Benefit cover: is something else you should look for, ideally you need the option of Combined Accident, Sickness & Unemployment, Unemployment Only or Accident and Sickness Only so that you may make the best choice for your own requirements. The most expensive is Combined ASU.
• Deferred periods: this is the length of time you choose to wait before you make a claim, this will depend on how much savings you have and if you can afford to wait.
• Benefit period: this is the length of time you can consecutively claim, and be paid for, a period of accident, sickness or unemployment and can vary from 3, 6, 12 or 24 months. The shorter the benefit period the cheaper the premium.