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It’s not the nicest thing to talk about – which is probably why we don’t really think about it much – but unexpected events like redundancy, accidents, long-term unemployment and illness can change our lives.
In fact, they can be truly devastating if you aren’t prepared for them, especially if you have a family who depend on you.
Your mortgage is probably your biggest financial commitment, and missing mortgage payments can put your home at risk. But Mortgage Payment Protection Insurance (MPPI) is designed to help you by covering the cost of your these payments if an accident, sickness or unemployment stops you from working.
• Unemployment only – this covers you if you’re made redundant (you also need to be registered with the government as unemployed and you have to be actively seeking work)
• Accident and sickness only – this will protect you against accidental injury that stops you working and long-term illness (this will have to be certified by a doctor)
• Accident, sickness and unemployment – this combines all the protection offered above
As a general rule, mortgage protection policies start paying out either 31 days or 60 days after you’re unable to work. However, many policies are ‘back to day one’ plans, so the payment you receive is backdated to the date you were first out of work.
Typical MPPI policies will cover mortgage payments for up to two years and will pay up to £2,000 a month, or around 65% of your monthly income (whichever is lower).
If you have a large savings pot or know you’ll get a decent redundancy package from your employer (one that will cover your repayments for a period you’re comfortable with), then you may not require MPPI cover for unemployment. But you may still need protection in case a long-term illness or an accident stops you from working.
There is a huge choice of mortgage protection products and providers on the market, so searching for and finding the right policy to suit your specific situation can be a time-consuming task. You may also end up paying over the odds for a product that provides more than you actually need.
You really need expert help and advice. So let Bower do the research for you, suggest the most suitable type of policy for your individual circumstances and then arrange everything on your behalf. It is all part of our bespoke, personalised service.
• Help you decide what type and which level of cover you really need
• Source the best products for you
• Clearly explain the cover you’ll receive and the costs involved
• Arrange your cover on your behalf so you do not have to worry about a thing
Give yourself peace of mind today and get in touch with the experts.