Mortgage Protection Insurance.
So you have your mortgage agreed and are looking forward to moving into your new home. How can you ensure that you stay in your new home in the event of the unexpected? A Mortgage protection insurance policy will allow you to protect your income, your health and your life.
For a small monthly premium, you can have peace of mind that should something happen to someone named on the mortgage you will be able to continue to pay the monthly mortgage payments.
There are a few policies that we can put into place to protect a mortgage and they are summarised below.
MPPI (Mortgage Payment Protection Insurance)
This policy, also known as ASU cover meaning Accident, Sickness and Unemployment cover is designed to provide protection of your monthly mortgage payments and mortgage related expenses such as life assurance premiums and buildings and contents insurance premiums. The policy can protect your mortgage payments for up to 2 years in the event that you are unable to work due to an accident, an illness or through unemployment. It would also cover you if you decided to leave work to become a full-time carer for someone else.
Mortgage Payment Protection Insurance – The Essentials
- A monthly benefit of up to £3,000 to pay your mortgage each month.
- An extra 33% for other associated costs such as life assurance premiums and home insurance premiums
- Unemployment cover includes ‘carer cover’ which covers you if you have to give up work to care for an immediate family member
- Full choice of ASU, AS or just Unemployment cover
- Have your policy kick in after 3 or 6 months, this in known as the deferred period
FREE policy benefits including;
- 24 Hour Health & Medical, Counselling and legal advice helplines
- FREE legal expenses for employment and bodily injury dispute
You can also protect yourself in the event of a critical illness such as cancer, heart attack or a stroke and you can cover yourself or a loved one in the event of death:
Decreasing Term Mortgage Protection – This is a life assurance policy that decreases in line with your mortgage over the term of the loan. It is the cheapest form of life insurance and can be set up to pay the proceeds to nominated beneficiaries which might be the second mortgage holder or your family.
Level Term Mortgage Protection – This policy has a sum assured which will remain the same and is suitable for interest only mortgages where the amount of the mortgage stays the same for the life of the loan.
TOP TIP – It is important to think about protecting all parties to a mortgage even if they do not have an income because often a non-working partner is responsible for child care and without them you will incur child care costs or have to give up work to look after your children.
Whatever type of mortgage protection you need, speak to one of our insurance brokers and they will arrange a suitable time to discuss your options and will work to meet your budget.