What to look for in Mortgage Payment Protection
Not all mortgage payment protection insurance policies are the same. MPPI policies, as they are traditionally known, vary throughout the industry and have not been harmonised in the same way as motor insurance. Customers can be forgiven for initially thinking the price of mortgage protection insurance is everything, after all high profile price comparison sites have sprung up emphasising price and seemingly little else.
If you are buying mortgage protection insurance over the internet, the site should provide a printable copy of the policy terms and conditions. We recommend you print a copy and make the time to read them thoroughly. Use a highlighter to mark any aspects of the policy that you wish to refer back to or ask questions about later. This can be time consuming but you will thank your stars if you find aspects of the policy you dislike and find better cover elsewhere and that it pays out when you need it to.
Always look for the ‘Exclusions’ section of mortgage protection policies where you can see lists of things the policy will not pay out for, or will only pay out if certain conditions are met. Always check the initial exclusion period which tells you how long you need to have had your protection policy in place before you can claim for unemployment. After the initial exclusion period has expired you need to know how long you would have to wait before the protection policy can pay out if you need to claim. As mortgage protection insurances also cover accident and sickness, always check what they will or will not pay out for. Check the cover for backache and stress related illnesses as these can also vary from policy to policy.
