How much cover do I need?

You need to make sure that your monthly mortgage payments are covered.

Work out how much income after tax you would need to maintain your monthly mortgage repayment. If your mortgage is subject to variable interest rates, it might then be prudent to add an extra for contingencies - just in case interest rates.

Most Mortgage Payment Protection policies are priced on a set monthly premium per £100 of monthly income provided. This premium will vary depending on what type of cover you want i.e. accident and sickness, unemployment or all three. You can then easily work out how much you need to pay for the level of income you need.

Mortgage Payment Protection Insurance will meet your monthly mortgage repayments on your behalf for up to 12 months. This type of insurance will not cover the total outstanding on your mortgage if you were to die or become critically ill or unable to ever work again. If you would like to protect yourself and your family in case you died then you need Life Insurance and Critical Illness Insurance in case you become really seriously ill or unable to work again.