Mortgage payment protection insurance
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Mortgage Payment Protection Insurance (sometimes
referred to as MPPI) is a type of
insurance that is now very popular in the
United Kingdom. It is often sold by the company that also
arranges your mortgage when you buy a property. It is a way
of ensuring that your monthly mortgage payments are made in
the event of you becoming unemployed. Unemployment can be
caused by accident, sickness or redundancy. It is usually
the case that the claimant must register at an unemployment to be eligible
for benefit from the Mortgage Payment Protection Insurance.
Benefit is usually paid for up to either 12 or 24 months,
this is usually sufficient time for the claimant to regain
employment. People often believe that if they become
unemployed the state will help them out, unfortunately this
is no longer true.
The majority of MPPI policies have a fixed premium regardless of sex, age or occupation. The premium is normally expressed as a percentage of £100 per month of benefit selected. More recently Mortgage Payment Protection Insurancepolicies are being developed with new premium rating systems. These age related policies provide much cheaper premiums for younger ages making the insurance more affordable.