Mortgage payment protection insurance guarantees your mortgage payments and associated costs if you are unable to work due to accident, sickness or unemployment.
Total Mortgage Protection Insurance
It is likely that your home is the largest investment you have ever made, and as such it is important to ensure that you have adequate mortgage protection insurance to cover you and your family from the unexpected, may that be accident, sickness, unemployment or should the worst happen. The reality is that these events do happen. Fortunately the mortgage insurance market is well developed and there are affordable policies available to cover most eventualities.
Your Financial Protection
Total mortgage protection cover is available by combining both Mortgage Payment Protection Insurance and Mortgage Life Insurance. By combining these two forms of mortgage insurance you and your family would be covered for:
- Short term sickness or injury which resulted in you having to take time off work with associated loss of earnings (for up to 24 months). In this event your mortgage loan repayments would be paid for by the insurer until you were well enough to return to work;
- Short term unemployment as the result of forced redundancy (for up to 24 months). As with the case of sickness or injury, the insurer would make your loan repayments until you returned to employment or self-employment;
- The unfortunate event of death. In this case the mortage life assurance portion of the policy combination would pay-off your outstanding loan in full, thus allowing the lender to be repaid and your family to remain in their home.
This policy combination will cover your loan repayments from accident, sickness, unemployment and pay off your mortgage with a tax free lump sum should the worst happen.
Additional options
Combining mortgage payment protection insurance and life cover will unfortunately still leave a gap in your financial protection if such were the case that you were to suffer a critical illness. Payment protection is designed to provide short term cover only, with policies lasting either 12 months or 24 months whilst life insurance covers you on death.
Critical illness cover
To protect yourself against long-term serious illness or injury such as cancer or a heart attack options are available to include critical illness cover with your plan. This policy can be added to your life insurance and would payout a tax-free lump sum upon the diagnosis of a critical illness, such as cancer or if you were to have a stroke.
Total mortgage protection cover by combining payment protection, a life policy and critical illness cover your loan repayments would be covered in the event of short-term sickness, injury and redundancy, diagnosis of a critical illness and death.
Mortgage life insurance provides a cash lump in the event of death. With cover available designed specifically for both interest only and repayment mortgages.
The independent body that regulates financial services (statutory powers are granted by the Financial Services and Markets Act 2000).
The Financial Services Authority overseas the mortgage insurance industry to ensure that customers are treated fairly and regulations are abided by.
The ABI is the industry trade body for the UK insurance industry. The website contains mortgage insurance related information, research and news.
The CML is the trade association for UK mortgage lenders. The website contains mortgage lending related information, research and news.
We have access to a wide range of products many of which are not available to the general public and because we deal with large volumes of policies each year we are able to acquire you better rates than you are likely to achieve going direct.
Once you have a policy with an insurer, if you need to make a claim you can do so directly with them, with no need to claim via us. Naturally, we are always to hand if you need any help dealing with the insurer or simply want some guidance.
Insurance comparison services
We are a whole of market broker and can therefore search for the most competitive rates from all top insurers.
We will only include insurers and policies that we deem to be of a high standard and consistent with our own and the Financial Services Authority's principle of treating customers fairly.
Mortgage protection insurance advice
We are experts in the mortgage protection insurance market and can discuss the ins and outs of your situation and identify the most appropriate policies for your needs. We provide independent and impartial advice completely free of charge as part of our service to you.
We are not tied to any one insurer and can therefore provide you with the impartial advice that you require. We are free to choose suitable and reputable policies from the whole of the mortgage insurance market.
Whatever form of loan protection you require we will be able to advise you on the most suitable policies and then broker those policies on your behalf.
Insure your mortgage payments against accident, sickness and unemployment.
Protect up to the lesser of £2,500 or 60%
of your gross (pre-tax) earnings.
of your gross (pre-tax) earnings.
Choose a length of cover which will either pay out for up to 12 or 24 months.
Cover up to an additional 25% of your mortgage payments for associated costs.
Protect your loved ones with a tax free
lump sum should the worst happen.
lump sum should the worst happen.
Choose the length of cover to fit with the
term of your mortage.
term of your mortage.
Choose either a level or decreasing plan
depending on your mortgage.
depending on your mortgage.
Joint policy options for those with a
mortgage in joint names.
mortgage in joint names.
Include critical illness cover for
additional protection.
additional protection.
