Mortgage Payment protection insurance, or MPPI, offers a warranty of repayments on your mortgage through insurance plans. The level of Mortgage Payment Protection Insurance depends on mortgage size. The Mortgage Payment Protection Insurance policy will pay, usually by making direct mortgage insurance payments to your lender. Mortgage insurance benefit will normally be paid for a maximum of 12 months. Mortgage Insurance payments stop when you return to work.

Mortgage Protection Insurance can also cover the monthly premiums for savings plans such as an endowment policy, or an Individual Savings Account (ISA) linked to a mortgage. The age limits for Mortgage Payment Protection Insurance is usually between 18 and 65. The self-employed can take Mortgage Protection Insurance, but they need to check the small print because exclusions can make claiming redundancy insurance difficult. Most mortgage insurance companies will only accept a claim if you have involuntarily ceased trading. Even with unemployment insurance, you must have register for JSA .


Also, most Mortgage protection insurance companies will accept a claim only if a contract worker is either on an annual contract that has been renewed at least once. With different contracts a redundancy insurance claim will be accepted only if they have spent 6 months with the same employer and the contract has been renewed twice. In this case unemployment insurance will pay only if the contract has been terminated early, and the unemployment insurance benefit will be paid only until the date the contract would have expired. Additionally, most Mortgage protection insurance policies will cover those working part time provided they work 16 hours per week.

Most mortgage payment protection insurance firms will agree to proactively refund increases in premiums, and reverse any reductions in cover, for customers who had these changes to their policies in 2009. They offer to reinstate policies where a customer had cancelled it within two months of an increase in premium or reduction in cover made during 2009. They also freeze premiums and cover for existing customers for at least the remainder of 2009; and amend MPPI contracts to ensure that all future customers are made aware of the circumstances in which firms have the right to vary premiums and cover and to cancel the contract.


Policy holders do not need to do anything as the insurance provider will be contacting them. However, the policy holders still have the right to complain to the firm if they are not satisfied about any thing such as the circumstances of the sale or the suitability of the product for them. At the end of the freeze the firm may amend or renew your contract to ensure you are made aware of the circumstances in which it may increase premiums or reduce cover. If the firm does this, it will give you two months’ notice so you can decide whether you wish to continue with your contract or not. If you choose to continue with your contract, the policy providers will not review or change pre-existing conditions of the contract, so your cover will continue without a break.