What Does Mortgage Protection Cover?

There are two main types of mortgage insurance to consider when seeking mortgage protection.

One type of mortgage insurance being mortgage life insurance and the other, mortgage payment protection insurance, otherwise known as MPPI.

MPPI: This type of payment protection is created especially to cover any mortgage loan repayments against the risk of having to take leave off work as a result of an accident that you may have been involved in, from sickness or unemployment.

Following a chosen deferred period (typically set at 30 days), the plan will have started paying out a monthly benefit thus allowing you to keep up with payments while you are away from work.

What might not be covered?
  • Forced redundancy or dismissal due to poor performance
  • End of seasonal/contracted work
  • Unemployment when having previous knowledge of redundancy risk
  • Pre-existing and chronic medical conditions

Mortgage life insurance: This is the life insurance that is typically taken out to cover a mortgage loan. This policy is specific to paying out a lump sum following a death so the loan is able to be repaid. Couples are most likely to take out this joint mortgages, also those with families whom they want to protect.

What might not be covered?
  • A terminal illness unless you have been diagnosed with less than 12 months to live
  • Critical illness (optional)

RM Mortgages can offer you an effect mortgage payment protection plan to suit your requirements!