Home / - Mortgage Payment Protection
What is it?
Mortgage Payment Protection Insurance, or MPPI, is insurance that will pay out a sum of money to help you cover your monthly mortgage repayments and related expenses if you are unable to work. Benefits are payable under this policy if you have an accident or sickness, or become unemployed through no fault of your own.
The insurance company will pay you the benefit you have selected so that you can make your monthly mortgage repayments for a fixed period of time. Benefits are usually payable for up to one year. MPPI can provide worthwhile cover against unexpected changes in your personal circumstances.
What are the main features?
MPPI cover is usually available without medical questionnaires or references from your employer. However, because of this there are specific conditions that apply to this type of cover that you should be aware of to ensure that your claim will be paid. For example, to claim on the unemployment part of the policy typically you must have been employed continuously by the same company for the last 6 months on a permanent contract.
Check carefully if you are self employed and require cover, as additional special conditions usually apply. Sickness benefits also have conditions which apply. To claim for sickness benefits you may not be able to make a claim for an illness you already have or have had before unless you have been symptom free for 24 months. Make sure you check this before you take out the policy. This will be called a pre-existing medical condition.
Stress or back complaints, and possibly other conditions, may not be covered, even if you can't work because of them. Again, it's worth checking before you take out the policy. If the cover does not meet your needs you have a legal right to cancel the policy and get a refund within 30 days of taking it out.
04 September 2007 13:52:09
A leading consumer charity has revealed the importance of life insurance for UK women, following a recent survey.
A study by the Fawcett's Society found that though men owe twice as much money as women, women are more likely to struggle with debt and be hit harder by the higher interest rates of 'sub-prime' credit.
According to James Ketchell, a spokesman for the Consumer Credit Counselling Service, (CCCS), the vicissitudes of fate can leave women in a dangerous financial situation, especially if they have no life cover or income protection insurance.
"Women are especially vulnerable when they come out of relationships and we find that 50 per cent of people that come to the CCCS are coming after life changing situations," he commented.
"These can be anything from losing their job or if a relationship has broken down and women are far more vulnerable than men in that situation."
The fact that "women are earning less on the one hand and having to pay more" - on the household or children for example - underlines the importance of protecting your future.
18 June 2007 16:28:02
Life insurance is essential for safeguarding your family's future, according to leading insurer Friends Provident.
After Father's Day saw families across the UK celebrating their dads, the provider has stressed the importance of guarding against the impact of a fatherless future.
Mark Jones, protection and actuarial manager at Friends Provident, said that British families save around £12,914 through the odd jobs carried out by patriarchs.
However, a loss of income could jeopardise the family's future.
"A family often see dad as just the breadwinner or walking cash machine, but if dad were unable to work a family would soon realise that money doesn't grow on trees," he said.
However, life insurance could provide a safeguard: "They need to consider what they would do if dad was no longer working and protect themselves from the unexpected."
Mr Smith's comments followed recent findings from Sainsbury's Bank, which revealed that the UK life insurance gap currently stands at £2.3 trillion.
28 June 2007 12:16:35
Leading life insurance provider Scottish Widows has highlighted the importance of preparing for bereavement.
The value of acquiring comprehensive life cover has been underlined by the insurer's claim that many widows struggle to cope with legal and financial matters following the loss of their spouse.
In light of International Widows Day on June 23rd, Julie Hutchison of Scottish Widows has stressed that taking out life insurance can help with the process of managing one's financial worries.
"For many women, the emotional difficulties of bereavement can be compounded by being faced with additional financial and legal issues," she said.
"It is quite understandable that legal and financial matters will not be a first priority. However for longer term peace of mind in relation to legal arrangements and home finances, the guidance of a trusted lawyer and financial adviser are critical after a bereavement."
Ms Hutchison's comments followed a recent Barclays study, which showed that just 37 per cent of British adults have made a will.
