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.
Where can I get it from?
At Direct Life we don't offer MPPI, however cover is available from helpucover.co.uk which is a trading style of Pinnacle Insurance plc, which is a group company. For more information go to www.helpucover.co.uk
24 January 2008 14:25:36
Although the UK is "hugely uninsured" when it comes to life cover, financial advice and comparison websites are playing an important role in plugging the gap.
That is the conclusion of the Association of British Insurers (ABI), whose representatives noted that such websites help increase awareness of the need for a "safety net" in the form of life insurance or other cover.
"Anything that helps to spread the message among consumers and provide choice to people… has to have contributed in some way to helping raise awareness," confirmed Nick Kirwan, the organisation's head of health and protection insurance.
He added: "Of course, anything that gives people more choice about how they buy is a good thing."
Mr Kirwan pointed out that while most people take out life insurance alongside their mortgage- in order to pay the loan off in the event of their death, fewer consider such cover at other significant times in their life - such as when they start a family.
He remarked: "There might be other life events that would trigger the need for [life insurance]; for example, if somebody goes self-employed.
"That's a time when they might well be giving up some life insurance that their employer has been providing in the past. All of a sudden they become responsible for all of their own benefits – they don't get sick pay any more."
He speculated that a large proportion of people do not realise how affordable life insurance is, particularly as budgets become stretched after the birth of a first child.
"But life insurance is very cheap, [particularly] at the ages when people typically start a family, in their twenties and thirties," he said.
Recent figures from the ABI suggested that one in three Britons have no life insurance at all, while a further one in three have not renewed their life cover for five years and therefore may be underinsured.
In 2005, the Telegraph reported that Swiss Re - the world's largest life and health reinsurer - had estimated that there was a £2.3 trillion "protection gap" between the expenses of UK families and what was actually covered by life insurance policies.
Financial expert Paul Wolf underlined last year that there is no "right time" to purchase life insurance, although most people prefer to leave at least enough money to cover the cost of their funeral.
"Aside from that, many people feel they don't need life insurance unless, and until, they have surviving dependants, debts or other liabilities to be paid off," explained the president of Innovative Benefits Consultants.
In Mr Wolf's opinion, people's life insurance needs change in line with their lifestyles - each lifestyle change brings a potential need for more or less life insurance, meaning coverage should be reviewed at every point.
Earlier this month, the importance of life insurance, income protection and other such "lifelines" was further underlined as popular provider PruProtect revealed the financial pressure put on British families as a result of the global credit crunch, falling house prices and growing consumer debt.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, critical illness and life insurance advice online
24 January 2008 14:22:03
A large majority of people in the UK research their life insurance options on the internet, a new poll has revealed.
Friends Provident's study also suggested that around a fifth turn to financial advisors for hints and tips.
Regarding the honesty of life insurance applicants, the provider's research indicated that up to nine out of ten people come clean about their lifestyle and medical history.
"It's good to see that many people recognise the importance of advice when buying insurance, and that they take the time to answer all questions truthfully when applying," remarked Mark Jones, protection products and actuarial manager at Friends Provident.
He added that the insurance business exists not only to collect premiums and pay valid claims, but also to provide peace of mind.
More than half of those who responded to his firm's Protection Survey expressed the opinion that anyone who has been dishonest on their life insurance application should not be paid any benefits.
In another recent study, it was revealed that 28 per cent of people given £5 to spend on monthly cover would opt for life insurance, while 17 per cent would choose income protection.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, critical illness and life insurance advice online
22 January 2008 12:16:33
The insurance industry's pledge to pay out on more life insurance, critical illness and income protection claims has been welcomed by the UK’s leading general insurance organisation.
Representatives for the British Insurance Brokers' Association (BIBA) commented on the Association of British Insurers' (ABI) decision regarding customers who unintentionally withhold medical information.
Announced earlier this month, the ruling means that only people who deliberately conceal details about their medical history will be financially penalised.
"I think that there were some grey areas previously [where] clients, insurers and medical practitioners were unsure of the position over what was and wasn't a valid claim," remarked Graeme Trudgill, BIBA's technical and corporate affairs executive.
He stated his belief that the ABI is seeking to "make the situation a bit more black and white" in order to help customers do the right thing and receive legitimate payouts.
Mr Trudgill echoed public concerns following a number of recent high-profile claim rejections when he noted that critical illness and life insurance cover have had "a difficult time in the press".
According to BIBA, individuals can often clarify the finer details of life insurance and critical illness policies with the help of a financial advisor or insurance broker.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, critical illness and life insurance advice online
