Will the Mortgage Payment Protection Insurance cover both the interest and capital?

It's up to you how much income you want to get insured for. Naturally, it's a good idea to get cover for your entire monthly repayment as this will prevent you from using your savings.

Mortgage Payment Protection Insurance is a simple form of insurance - you just need to decide how much you want the insurance to pay each month. It doesn't matter whether you have a Repayment Mortgage or an Interest Only Mortgage, Mortgage Payment Protection insurance can cover the entire monthly repayment for you.

We suggest that you check how much your mortgage repayments are each month and if you have a variable interest rate, add a bit more just in case interest rates rise.

Mortgage Payment Protection Insurance is only designed to replace lost income and meet your monthly mortgage repayments for up to 12 months. Mortgage Payment Protection Insurance will not repay the outstanding debt to your mortgage provider if you were to die, become critically ill or be unable to attend work again. In this case you need Life Insurance to cover the entire mortgage if you were to die and Critical Illness Cover in case you contract a serious illness.