Mortgage repayment insurance
If you have a mortgage then you might have thought about taking out some
mortgage repayment insurance. Mortgage
repayment insurance is also known as mortgage payment protection insurance or
MPPI.
Essentially this type of mortgage insurance protects your
mortgage repayments in the event of accident, sickness or redundancy. If you
take out a mortgage repayment
protection insurance policy then you can choose which parts
of the cover you need. This will affect the monthly insurance premium. What would happen to you if
you were made redundant or suffered a serious illness or accident
which prevented you from working for some time. How would your
finances bear up under the strain? What is more important, could you
continue to make your mortgage repayments or would your home be at
risk?
There are many places to buy Mortgage repayment insurance and
some of the most expensive are from the lenders themselves. Much better to buy
Mortgage repayment insurance from a
mortgage broker who can give you some choice and
cheaper mortgage insurance premiums.
Mortgage payment insurance or Mortgage Payment Protection Insurance (MPPI) is
designed to provide a level of assistance with mortgage and
associated repayments if the insured person is unable to work
through illness, injury of involuntary unemployment. The monthly
benefit payments under the Mortgage Payment Protection Insurance
policy are paid out up to a maximum period of benefit which is
usually either 12 months or 24 months.
The Mortgage Payment Protection Insurance policies
usually charge a fixed premium rate based of the amount of monthly
benefit purchased. There is no loading for smokers, age, vocation or
physical history but please note that it is normal to exclude
Mortgage Payment Protection Insurance cover for medical conditions
which pre-exist the start of the Mortgage Payment Protection
Insurance cover.
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