Making sure that you and your family have a roof over your heads, particularly during the bad times, can be one of the biggest challenges we all face.

Though we know that times can get hard, especially with the current economic crisis, having a home to come back to can make all the difference.

However, knowing which form of mortgage protection you should choose depends specifically on your own personal circumstances and your needs for the future.

Mortgage Life Insurance From

Benefits of Mortgage Life Cover

A mortgage life insurance policy is essential to ensure that your loved ones are relieved of the financial burden of the mortgage if you are no longer there to support them.

It will repay the outstanding amount of the mortgage upon the death of the policy holder as one single lump sum.

Such a policy only benefits those that are left behind. It does not pay out during the life of the policy holder and provides no benefits if you are unable to meet your monthly repayments whilst you are alive.

If the mortgage is repaid during the life of the policy holder, the cover traditionally expires with zero end value.

Benefits of Mortgage Payment Protection Insurance

For cover that will help you meet your mortgage repayments when you are unable to work due to an accident, illness or unemployment, MPPI (Mortgage Payment Protection Insurance) can be a more appropriate product.

This policy holds no value on the death of the holder and will not repay the outstanding monies that become due. This insurance is designed to meet monthly mortgage costs when the insured is unable to meet them himself due to illness, accident or unemployment.

Similar to standard ASU (Accident, Sickness and Unemployment Insurance) MPPI is designed to keep you financially secure if you are unable to work, however an MPPI policy is specifically designed to cover the mortgage.

This insurance will provide repayments on a regular basis for a set period of time which is usually between 12 and 24 months.

Whether you are unable to maintain your current employment due to ill health or an accident, or if you have been made unemployed through no fault of your own, this type of insurance cover can give you the peace of mind to protect you against loosing your home.

Such a policy can offer the breathing space to be able to find suitable new employment and takes away the pressure to simply jump into the first new job that will meet your bills. It gives you time to refocus and can offer the space to relax and recover after an illness or accident.

The essential difference between these two products is the type of cover they offer. Both provide significant benefits to the future security of your home. The decision between taking up either policy, or a combination of the two, depends entirely on how you intend to protect your mortgage against the challenges that you could face in the future.


This article was kindly provided by Steven Keogh