Mortgage Payment Protection Insurance. (MPPI)
Mortgage Payment Protection Insurance (MPPI) is a plan set up in place to pay your monthly mortgage amount whilst a mortgage is in place.This kind of insurance pays for a specified period if you suffer from any form of accident, sickness or unemployment.
The cover can be set up in various different ways to ensure that you receive the exact amount of cover needed.
Anyone with a mortgage should consider this kind of protection as it gives them piece of mind.
If you already have other cover in place such as ASU, Critical illness or income protection then this cover may well not be needed.
If you also have a significant amount of savings in the bank then this may not be for you either.
Please do not be over optimistic in regards to relying on your savings to pay the mortgage as often savings are swallowed up quicker than anticipated.
Most mortgage payment protection insurance products will exclude pre-existing medical conditions and will usually have an exclusion period of 60 days from when the policy starts.
The policy will not pay out during the exclusion period so it is wise to ensure you have at least two months savings.
There are other providers of Payment Protection Insurance [Short-Term Income Protection] and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website at www.moneymadeclear.org.uk
Example of cost:
Typical Cost £4.84 per month, for every £100 of monthly benefit. Example based on a 30 year old customer with a net income of £1,500 per month and a 30 day excess on the policy.
Please contact CFM Financial Planning in Surrey to discuss which policy is best suited to your personal circumstances.
The Mortgage Payment Protection Insurance we have access to is optional. There are other providers of payment protection insurance and other products designed to protect you against loss of income.
For impartial information about insurance, please visit the website at www.moneyhelper.org.uk