None of us know what is around the corner and if an accident, extended illness or involuntary unemployment struck, how you would manage financially would no doubt be foremost in your mind. With mortgage payment protection insurance, you can get a monthly tax free payment towards your monthly repayments, which will help ease the financial stress.
- Mortgage Protection
- Income Protection
- Loan Protection
- Life Insurance
Mortgage, income and loan protection all come from the same stable of very useful financial products also collectively known as payment protection insurance (PPI). Each one works on the straight forward principle that an incapacity to work – through sickness or accidental injury – or a period of temporary unemployment following enforced redundancy can lead to a loss of income and extreme difficulty, therefore, in meeting ongoing financial commitments.
In any of these unforeseen events, then, payment protection insurance typically kicks in to provide a replacement monthly income, at a level of your own choosing, to cover such commitments for a maximum period of time, which is typically limited to 12 or 24 months – in other words, quite long enough for you to have recovered your good health or to have secured another job.
The different labels applied to the various products under the payment protection insurance umbrella are simply a reflection of the different purposes to which each product is suited.
Do note that policy pay out limits will apply.
Mortgage payment protection insurance (MPPI), for example, just as its name suggests, will provide a monthly benefit in the event of incapacity or involuntary unemployment, to ensure that mortgage repayments (and associated mortgage and property insurance premiums) continue to be paid;
Loan payment protection insurance will ensure that repayments on any other type of loan continue to be met; and;
Income payment protection insurance will provide a monthly replacement income to help meet any number of ongoing financial commitments.
With mortgage, income and loan protection to choose from, there is certain to be payment protection insurance cover that is most suited to your needs.