Why cover:
  • 6 of 10 UK mortgage holders have life cover*
  • secure your loved ones’ well-being
  • price at all-time low, cover from £5 a month
Why us:
  • helping you find the right policy for you
  • critical illness cover; heart attack,cancer,etc.
  • the whole market compared, fast & free

Should you get mortgage payment protection with your mortgage life policy?

Mortgage Payment Protection Insurance (MPPI) will cover the monthly payments on the mortgage if you cannot earn an income due to:

The need for MPPI

  • The potential loss of a breadwinner can spell disaster for the family. 70% of UK families depend on a breadwinner for the family’s income. *
  • The mortgage comprises a bulk of the family’s debt. The average mortgage amount is at £107,820.*
  • Around 320,000 (male and female) were diagnosed with cancer in the UK each year during 2008 to 2010. Of the cancers, the most common ones are breast cancer, prostate cancer, lung cancer and colorectal cancer.**
  • 152,000 people have a stroke (as per The Stroke Association website 2012).
  • According to the Multiple Sclerosis Trust, there is an estimated 2,500 to 3,000 people diagnosed with MS every year, translating to 50 – 60 people diagnosed every week.
  • The unemployment rate is at 7.9%, which translated to 2.56 million people without jobs, 20,000 of who are below 25 years old.
  • In the event of disability, statistics show that over 70% of those disabled or sick will not receive enough to help them pay for their mortgage and other monthly expenses.

Sources:

*The Aviva Family Finances Report (January 2013)
**UK Office of National Statistics

MPPI can be added as a rider to your mortgage life insurance policy in order to strengthen your policy. You see, simple mortgage life insurance will only cover the mortgage in the event of your death. But there are so many things that can happen within the 20 or so years you have the mortgage. You can get sick, get into an accident or lose your job (which, with today’s economic downturn is a strong possibility).

Features of MPPI:

Qualification requirements for MPPI

The mystery of the hidden PPI policy

The Financial Services Authority was inundated with customer complaints (as much a 20,000 complaints in a day) due to mis-selling of Payment Protection Insurance.

Customers have been demanding for compensation for tall the PPI premiums they unknowingly paid the lending companies.

Some complains include:

  • Mis-selling: Customers were told that it was essential or sold to self-employed people who won’t be able to make a claim.
  • Expensive: The PPI premiums can tack on as much as 20% to the overall cost of the loan.
  • Ineffective: The PPI policies were structured so that it would be very hard to make a claim.
  • Delayed claims: Claimants faced difficult claims processes or long delays
  • Banks and lending companies have been making refunds with an average refund of £3,000.
  • Hopefully, with the FSA making more stringent standards on the selling of PPI, as well as heavy fines, the PPI would be bought by a customer who feels the need for it.

MPPI is offered to eligible applicants, namely,

Advantages:

Disadvantages:

Here are some questions for you to ask yourself when considering getting a mortgage payment protection rider with your mortgage life insurance:

Adding mortgage payment protection coverage will strengthen your policy further, but it is also important to check whether you actually need it or whether you are eligible for it.

Latest update: 17.06.2013

Get your mortgage life insurance quote now, fill our form on the right.

Other sites: critical illness cover, lifeassurance.org.