Mortgage Payment Protection Insurance (MPPI) – also referred to as mortgage life insurance – is a type of life insurance that covers the cost of your mortgage each month in case you lose your job or become unwell or after you passed away, ensuring that your spouse and dependants don’t need to worry about the monthly repayments. It can also be known as mortgage insurance or mortgage assurance
Mortgage repayments are one of the main bills individuals pay, taking around 18% of combined household income each month, or 24% if you live in London. So it is important to think about how you'd continue to pay your mortgage if you or your partner lost your source of income.
There are three types of mortgage payment protection insurance: ‘unemployment only’, ‘accident and sickness only’, and ‘accident, sickness and unemployment’.
If you can’t cover your mortgage costs because you're off work, your insurer will give you money each month to help out.
Mortgage protection insurance can cover you for the following:
• accident and sickness
• accident, sickness and unemployment
The pay-out amount depends on the type of mortgage protection cover you choose, and the best cover type for you depends on your personal situation.
The amount of cover needed is all dependent on your outstanding mortgage. Some policies can pay out 125% of the outstanding amount, which is made to cover bills too.
Once you have decided how much cover you want, you need to do a mortgage protection insurance comparison. It is a good idea to get as many whole life insurance quotes as possible to find the cheapest monthly premiums. Click on ‘get my free quotes’ on this page and fill out the details to get your mortgage protection insurance comparison.