What is it?
A Mortgage Payment Protection plan is designed to ensure that you are able to continue to make your mortgage (and other related expenditure) payments in the event of accident, sickness or unemployment. It is often referred to as Accident, Sickness and Unemployment cover or ASU. These plans usually pay benefits for up to one year but some providers offer policies with cover up to two years. If you are seeking a plan that pays for a longer period, then Income Protection Insurance is generally more suitable.
When considering whether this type of policy is suitable for you it is important to understand what state benefits are available and if employed what company benefits may be available to you.
Who is it for?
This type of plan is designed for those who are worried about being able to continue their mortgage payments in the event of losing income due to accident, sickness or unemployment.
It is extremely important that you take independent financial advice before taking out this type of plan as they are not always the best nor cheapest option.
THE PLAN WILL HAVE NO CASH IN VALUE AT ANY TIME, AND WILL CEASE AT THE END OF THE TERM. IF PREMIUMS ARE NOT MAINTAINED, THEN COVER WILL LAPSE.