What is Mortgage Payment Protection Insurance?
Nov 3rd, 2008 | By admin | Category: Featured Articles, financeFor those of you out there who think getting a mortgage is a scary thought, we have put together some info that is going to break down all this information to make it easier for you to digest. Buying a home for the first time is a daunting experience when it should be exciting. There are lots of decisions to make as a first time buyer and we want to make them easier.
What is Mortgage Payment Protection Insurance?
MPPI pays your mortgage if you are unable to work due to an accident, sickness or unemployment
Benefits
- A big plus is that with as many as 90 repossessions occurring everyday it can keep a roof over your families heads should anything happen to you
- Your claim payout is tax free
Some Top Tips
1. Always shop around using the internet you can often find great savings
2. If you have a Repayment Mortgage you should make sure your MPPI covers your repayments, life, home and contents insurance
3. If you have an Interest only Mortgage your MPPI should cover the interest payments on your mortgage and any costs relating to your investment plan to pay off your mortgage at the end of the term
4. If you have a variable rate mortgage and the interest rate moves make sure you amend your policy in order for it to cover the mortgage repayments
5. Remember you can take an MPPI policy out at any time not just when you are arranging a mortgage
Critical illness and MPPI
MPPI will payout a pre-determined sum and cover you should you fall ill and not be able to work
Critical illness Insurance pays out a lump sum if you are diagnosed with any of the chronic illnesses listed on the policy
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