Mortgage Payment Protection Insurance
Mortgage Payment Protection Insurance (MPPI) is designed to cover the
cost of your mortgage payments in the event that an accident, sickness
or unemployment stops you from working.
Most MPPI policies will only pay out for a maximum of a year, so if
you do have sufficient savings in place to tide your over for this
length of time, then you may not require cover.
Check how much your employer is likely to pay you in the event that
you get made redundant. If you have worked at your company for several
years, the chances are you may get a decent payout, which would mean you
might be paying for the unemployment element of your mortgage
protection policy unnecessarily. It is also worth noting that although
statutory sick pay doesn't usually affect short term IP, anything you
receive over & above statutory (from your employer for example) can
affect the benefit payable under the policy. If this is the case, you
may be better off going for accident and sickness MPPI cover only. State
benefits don't usually affect this unless they take you over the
maximum claim limits, but this is worth checking before taking out a
policy.
As a general rule, mortgage protection policies will start paying out
either 31 days or 60 days after you are unable to work. However, many
policies are 'back to day one' plans. This means that the benefit you
receive is backdated to the date you were first out of work.
Monthly payments are capped, usually at £1,500 or £2,000 a month or
at a percentage of your income. So if you have a very large mortgage,
you will need to think about how you will cover any surplus.
Remember that policies won't usually allow claims related to
unemployment within the first three or six months so make sure you have
savings in place for this period.
Of course, if you would like to read more about MPPI, our mortgage protection insurance guide will help you understand the product better.
Mortgage protection insurance is a life insurance policy that pays off your mortgage, if you or your partner dies, before the mortgage is paid off.
The policy has a term identical to your mortgage and the benefits reduce in as the balance on your mortgage decreases.
In general, a mortgage protection policy is a condition of a mortgage loan.
Mortgages.ie provide you with the following:
We provide the cheapest mortgage protection policies in Ireland.
We provide professional independent advice, to assist you in choosing a product suitable to your means.
We provide a full comparison between the mortgage protection
products offered by the major life companies in Ireland .To compare
quotes and apply please click HERE
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