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About Mortgage Payment Protection Insurance

Mortgage Payment Protection Insurance (sometimes referred to as MPPI) is a type of [insurance] that is now very popular in the [United Kingdom]. It is often sold by the company that also arranges your [mortgage] when you buy a property. It is a way of ensuring that your monthly mortgage payments are made in the event of you becoming unemployed. [Unemployment] can be caused by accident, sickness or [redundancy (law)]. It is usually the case that the [claimant] must register at an unemployment to be eligible for benefit from the Mortgage Payment Protection Insurance. Benefit is usually paid for up to either 12 or 24 months, this is usually sufficient time for the claimant to regain employment. People often believe that if they become unemployed the state will help them out, unfortunately this is no longer true.

The majority of MPPI policies have a fixed premium regardless of sex, age or occupation. The premium is normally expressed as a percentage of £100 per month of benefit selected. More recently Mortgage Payment Protection Insurance policies are being developed with new premium rating systems. These age related policies provide much cheaper premiums for younger ages making the insurance more affordable.

External links Information Reference: Wikipedia.org

Mortgage payment protection insurance

Questions and Answers

do i really need critical life insurance on a £30,000 motgage?

Q) i have life insurance, mortgage re payment protection, and sickness and redundancey.. i think im over insured. im paying about £30 a month for this critical lfe cover and thats only if i get ill with a critical ilness thats going to kill me off!.. would i be better sending this £30 over to my mortgage account a month as mine is so low.. i feel im being ripped off on a "might" happen

A) your better off where you are.

mortgage payment protection insurance question?

Q) Is this practically the same as term life except ins co will only pay the outstanding principal? As far as the ins premium goes, would they use the same scale that varies by age and pysical condition? Would they also cover disability, loss of jobs, etc?

A) A mortgage life insurance policy offered through your lender is a group term policy that pays using EITHER an amortization schedule OR by using the outstanding balance at the date of death, minus outstanding late fees. Mortgage disability polices typically pay the monthly amount due to the lender. These policies only pay up to a certain number of months, such as 24, 48 or 72 months. Benefits end when the disability ceases or the maximum benefit is paid. Premiums will vary according to age, but are not adjusted according to health. Typically, if an applicant has any health conditions, the coverage is declined. Mortgage unemployment insurance is available, but very few insurers are willing to cover this any more. Ask your mortgage lender if this is available. One thing to keep in mind is that the mortgage company is the beneficiary of any proceeds paid due to death or disability. These policies do not provide income directly to you. If you want income in the event of such a loss, speak with an agent and get quotes for a term life policy and/or disability income policy. I hope this helps.

Is a monthly premium of $113 for MPPI on a $937/mo mortgage reasonable?

Q) MPPI is Mortgage Protection Payment Insurance

A) If this is protecting your mortgate payment against layoffs or illness, then it's extremely high. You'd have to have a claim every 9 months to equal the mortgage premium. I've had mortgages continuously for over 30 years and have never had a claim. If you're talking about PMI -- Private Mortgage Insurance, then it may be about right, depending upon the equity in your home and your credit rating.