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Mortgage protection insurance covers the cost of your mortgage payments if you become unwell or lose your job. Find out if it's likely to be a good option for you.
A mortgage is one of the largest financial commitment you’ll ever make. If something were to happen to you, could your finances cope?
What is Mortgage Protection Insurance
Mortgage protection insurance (also known as 'mortgage payment protection insurance' or simply 'mortgage insurance') will pay you a set amount each month, usually for a period of up to two years, if you are unable to work.
There are three main types - unemployment only; accident and sickness only; and accident, sickness and unemployment. Unemployment policies will cover you only if you are made redundant. Accident and sickness cover will protect you if have a long-term illness or suffer a serious injury.
There's some flexibility for you to determine how much your policy will pay out. For example, you can choose for the policy to cover just the cost of your mortgage payments, or the cost of other bills too. If you choose to cover the cost of other bills, providers will typically pay out 125% of your mortgage costs.
You can also choose to base the cover on your salary. Providers will typically pay out up to 50% of your monthly salary.
Premium costs vary depending on your circumstances, and factors such as:
the cost of your mortgage repayments
what product features you opt for
what type of job you have.