What exactly is Mortgage Payment Protection Insurance?

Mortgage Payment Protection Insurance makes sure that if you can't work due to sickness, accident, or unemployment, your mortgage repayments will still be covered. It's an important form of insurance because your home is at risk if you are not able to keep up the repayment of loans secured against it.

Basically, Mortgage Payment Protection Insurance provides essential financial support if you are unable to work.

To be eligible for a claim you have to be unable to work for a minimum number of days - this is called the "qualifying period". The qualifying is normally 28 days or a month. Some Mortgage Payment Protection policies start making your payments after the qualifying period but policies sold through this website backdate your payments to the first day you were off work.

Once you have started to claim, your mortgage payments will be covered until you are either able to return to work, or the maximum number of months the policy will pay out has been reached - this is usually 12 months.

Most good Mortgage Payment Protection policies offer the option of insuring yourself for accident and sickness, unemployment only, or all three. The premiums are very affordable so you should seriously consider insuring yourself for all three eventualities.

All payouts from insurance policies are tax-free.