Mortgage Payment Protection

In the event of an accident, illness, redundancy or becoming a carer, Mortgage Payment Protection ensures that your mortgage payments are paid by the insurer for a limited period of time.

Key Facts

  • Around 500,000 new Mortgage Payment Protection insurance policies are taken out each year, according to the Association of British Insurers.
  • Of Mortgage Payment Protection insurance policies taken out each year around three quarters cover accident, sickness and unemployment, which is often shortened to ASU. The remaining quarter either cover only accident and sickness or unemployment.
  • Around 100,000 Mortgage Payment Protection insurance claims are made each year.
  • The average length of time of Mortgage Payment Protection insurance policy holders need to claim for is around six months.

Typical Benefits

  • Flexibility in terms of the length of time mortgage repayments are met.
  • Ability to add extra cover to ensure bills as well as mortgage repayments are met while not working.
  • If arranged through a mortgage lender, premiums can be paid together with your mortgage.
  • Some mortgage lenders and insurance firms also offer guidance about getting back to work and dealing with redundancy. This can be a help at a potentially distressing time.

See also: Mortgage Insurance, Mortgage Protection and Mortgage Cover

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