Mortgage Payment Protection Insurance (MPPI)

Mortgage Payment Protection Insurance (MPPI)

If a mortgage starts to go into arrears then this could cause major problems securing finance in the future and continued mortgage arrears could lead to the property eventually being repossessed.

Therefore you might consider taking out protection against circumstances which could arise causing you to have difficulty in making your mortgage payments.

MPPI is a type of ASU, which is targeted at the mortgage market. This type of cover will pay the mortgage costs if the policy holder is unable to work due to ill health, or is made redundant, helping to avoid the mortgage falling into arrears.

The policy is normally arranged to cover the mortgage payment as a minimum, although some individuals prefer to also cover other costs associated with the mortgage, such as buildings and contents insurance or endowment premiums.

A MPPI policy will typically have exclusions applied and payment will start after a deferred period, often 30-60 days. The policy will provide tax free benefit for a period of up to 12 months and normally a maximum of 24 months.