mortgage-protection.co.uk

How do policies work?

As a general rule, mortgage payment protection policies will start paying out either 31 days or 60 days after you are unable to work. However, many policies are 'back to day one' plans. This means that the benefit you receive is backdated to the date you were first out of work.

Most polices only pay out for up to 12 months, although you can get policies which will only pay out for as little as three months. Monthly payments are capped, usually at £1,500 or £2,000 a month, so if you have a very large mortgage, you will need to think about how you will cover any surplus.

Policies won't usually allow claims for unemployment within the first three to six months.

What else should I know?

Remember that if you receive a payout from your MPPI policy, this could affect your entitlement to some income-related benefits.  Find out whether the policy pays you directly, or your lender.

You should also check that you don't have any other kind of cover already in place which might protect you in the event you are unable to work. For example, if you have income protection cover, this will guarantee a regular income if you are unable to work for a protracted period  due to illness or disability. It will pay out until you are well enough to return to work, or until the end of the policy .

Income protection won't, however, pay out in the event that you become unemployed, so if you already have this type of policy, you might also want to consider taking out an unemployment-only mortgage payment protection plan too so that you are fully protected.

Income protection won't, however, pay out in the event that you become unemployed, so if you already have this type of policy, you might also want to consider taking out an unemployment-only mortgage payment protection plan too so that you are fully protected.