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.