Mortgage Payment Protection Insurance ( MPPI )
Are you considering Mortgage Payment Insurance? Check out these 11 Top Tips - youll find them invaluable.
Author: Michael Challiner
- Mortgage - does it give the best deal against your home
- A basic intorduction to the different types of mortgages available and their uses.
- Mortgages. Higher Lending Charges are outrageous.
- Higher Lending Charges are often charged if your mortgage is 90% or more of your property's value. We think the charge is a form of profiteering by the lenders and should be abolished. This article explains why.
- Mortgages. Higher Lending Charges are outrageous.
- Higher Lending Charges are often charged if your mortgage is 90% or more of your property's value. We think the charge is a form of profiteering by the lenders and should be abolished. This article explains why.
- Mortgages. Exit fees to be capped.
- After years of lenders having a free hand to increase exit charges, the FSA steps in to restore fairness for consumers. This article explains.
Mortgage Payment Protection Insurance (MPPI) is just one of a range of valuable insurances which includes critical illness insurance and life insurance, which you can use to reduce that risk ( life assurance ) and protect your familys finances. The purpose of MPPI is to ensure that you have the income to continue paying your mortgage repayments if youre off work for an extended period due to accident, sickness or unemployment. (medical insurance)
The Top Tips
• Some mortgage lenders may try to coerce you into taking out an MPPI policy along with your mortgage. If this happens, make sure you find out how much extra the MPPI cover will cost ( car insurance policy ) you each month. Then get on the Internet and get some competitive quotations. Most people will find that the Internet saves them up to 60%!
• Mortgage lenders will only quote you for the amount of cover you need to meet your monthly mortgage repayments. The author recommends that you extend the cover to include the cost of your home & contents insurance, mortgage life insurance, and the cost of any investment plan you have arranged to repay your mortgage (the investment plan only applies to mortgages where you are only paying the interest each month and will be repaying the capital at the end of the mortgage).
• You can take out MPPI at any time. Some people wrongly believe that you can only take out MPPI when you arrange the mortgage. (life insurance)
• If your employment is casual or seasonal you will not be able to claim on an MPPI policy. Every policy has what are called exclusions and seasonal and casual work is a ( insurance ) typical exclusion. Exclusions are the circumstances under which a claim will be refused. Be sure to read these exclusions before you take out the policy and, if your circumstances mean that youre unlikely to be able to make a valid claim, dont buy the insurance! Exclusions on MPPI policies can eliminate 50% of potential claims.
• The cheapest is not always the best. So dont automatically opt for the cheapest policy. ( online car insurance ) The circumstances under which policies pay out do vary - so check them out cautiously. The premium quoted will be a reflection of the extent of the exclusions in the policy, the level of cover provided and the insurers general pricing policy.
• MPPI is sold under a number of alternative names. So dont get confused. It can also be described as Accident Sickness and Unemployment Insurance, Payment Care and Payment Cover. In principle, they are the same - but remember to check out the exclusions! (cheap life insurance)
Click here for page 2
Your home may be repossessed if you do not keep up your repayments on a mortgage or any debt secured on it. Security by way of a charge on your home may be required.