| Mortgage
Protection Insurance policies also known as Mortgage
Payment Protection Insurance and Mortgage Insurance,
can individually cover your mortgage repayments
if you are unable to work because of illness,
accident or you become unemployed.
Our Mortgage Protection Insurance providers allow
you to vary the type of Mortgage Protection Insurance
cover, so that you can choose; just accident and
sickness, or just unemployment cover for example.
Mortgage Protection Insurance covers your usual
monthly repayment and may cover other related
payments such as house insurance premiums if you
so wish, giving the roof over your head complete
protection should the worst happen.
Most Mortgage payment protection
insurance policies stop paying out after a set
period, normally 12 months although some Mortgage
Payment Protection insurances make payments for
only six months.
Mortgage Protection Insurance policies
aren’t simple to understand and contain a
host of terms, conditions and exclusions. You
need to read the Mortgage Protection Insurance
policy document carefully to ensure to understand
exactly what you’re covered for, and more
importantly what’s not covered.
Am I eligible?
Eligibility criteria for Mortgage
Payment Protection Insurance
You are normally eligible for Mortgage Payment
Protection Insurance cover if you satisfy the
following criteria:
- you are at least 18 and under 65 and you are
permanently resident and working within the
UK, Channel Islands or Isle of Man and eligible
to receive Jobseeker's Allowance;
- you are now and have been for the past six
months in continuous permanent employment, contract
employment or self-employment for more than
16 hours per week;
- you are taking out Mortgage Payment Protection
Insurance policy to protect the mortgage on
the private residential property you live in;
and
- you agree to keep to the terms and conditions
of the Mortgage Payment Protection Insurance.
However, there are some factors which mean you
will not be eligible for cover:
- you know, or you are aware, of any circumstances
that may result in you becoming unemployed;
- your work is of a casual, temporary or seasonal
nature;
- you work for a temporary employment agency;
- you are in any type of occupation where unemployment
is a regular feature of that particular job;
or
- you are currently unable to work due to a
disability (this clause does not apply if you
are on maternity leave).
How this Mortgage Payment Protection Insurance
policy works
- You choose the amount of monthly cover you
need.
- You choose the type and level of cover you
need.
- You pay your premium as it falls due.
When you can make a claim under a Mortgage
Payment Protection Insurance policy?
You will normally be able to make a claim under
a Mortgage Payment Protection Insurance policy
if:
- you have lost your job due to circumstances
beyond your control and you are registered as
being unemployed; or
- you are unable to work due to a personal accident
or sickness disability and you are under the
regular care and attention of a doctor or consultant.
There are certain circumstances when you will
not be able to make a claim. Details of all the
exclusions are provided in the Mortgage Payment
Protection Insurance policy terms and conditions
available online.
What is the cost of Mortgage Payment Protection
Insurance
The cost of cover is determined by:
- the amount of monthly cover you need;
- the type of cover you select;
Premiums for cover under Mortgage Payment Protection
Insurance policies are collected monthly in advance
by direct debit.
MONTHLY PREMIUM RATES
The costs of cover are expressed as a rate per
£100 of monthly benefit and include Insurance
Premium Tax.
Working out your monthly premium
for Mortgage Payment Protection Insurance
To work out your monthly premium, simply click
below for an instant quote.
The broker who sells you a Mortgage
Protection Insurance policy should, in the key
features section, explain the important cover
details and draw your attention, in the policy
wording to important or unusual exclusions. They
should also make sure that the Mortgage Protection
Insurance they sell you is suitable for your needs.
However, be aware; many Mortgage Protection Insurance
providers are failing to do this.
When your Mortgage Protection Insurance
cover starts you normally have to wait for 120
days before you are eligible to claim. For example,
in most Mortgage Protection Insurance policies
you can’t claim for unemployment until you’ve
had the policy for four months. With personal
accident and sickness you can normally make a
claim as soon as the Mortgage Payment Protection
Insurance policy starts.
Once you are eligible to claim,
you normally have to be sick or unemployed for
30 days before you receive any money - this is
called an excess period. However, some
Mortgage Protection Insurance polices will back
date the benefit to the first day of your claim.
This is known as back-to-day-one cover. Claims
as a result of medical problems that you have
had or were treated for in the last year won’t
normally be covered under an Mortgage Protection
Insurance policy. This could mean that your claim
will be turned down if you are unable to work
due to an existing condition. Under the insurance
code Mortgage Protection Insurance providers have
a duty to ensure their Mortgage Protection Insurance
is suitable for your needs and so it is essential
that you disclose anything that you think could
affect your Mortgage Protection Insurance cover.
Before you can claim for unemployment under any
Mortgage Protection Insurance policy, you normally
need to be in full-time work for six months. There
can be different requirements if you are on a
fixed term contract or self-employed. If you work
part-time you normally need to be employed for
20 hours per week to be able to qualify for Mortgage
Protection Insurance cover.
Always make sure you are eligible
for cover when you take out a Mortgage Protection
Insurance policy, by reading the policy documentation.
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