Mortgage Protection Quote

Type of Policy

Mortgage payment protection is made up of three components in accident, sickness and unemployment. Depending upon your situation you can choose to protect against illness and injury only, unemployment only or cover all three.

Accident and sickness mortgage cover is designed to provide a monthly benefit should you be unable to work due to illness or injury. The unemployment protection provides a monthly income should you be made redundant.

Mortgage Payments

The monthly payments you have to pay towards your mortgage, with a payment protection policy you are eligible to cover up to 125% of your monthly home loan repayments.

The larger your monthly repayments the greater level of cover you will require, most insurers cap the level of benefit at £2,500 regardless of your repayments or gross annual salary.

Length of Cover

Home loan protection policies tend to be monthly rolling contracts with a benefit payment term should a claim arise of either 12 or 24 months.

Should a claim arise the policy would pay out either until you reach the end of the payment term of 12 or 24 months or you return to work. A 24 month mortgage protection term provides an additional level of cover which results in higher premiums.

Additional Cover

You are eligible to cover up to 125% of your monthly mortgage payments, the additional cover can be used to meet other outgoings such as utilities and council tax.

Many insurers stagger the additional benefit options at 5%, 10% and 25% of your monthly home loan repayments.

Deferred Period

The length of time for which you need to be unable to work before your mortgage protection cover will start to accumulate and pay out a monthly benefit.

For short term mortgage payment protection policies deferred periods tend to range from 30 days up to 90 days. There is an option to have the cover pay back to the first day of your illness should you have been unable to work for 30 consecutive days, this is known as 'Back to day 1' cover.