Frequently Asked Questions
"What's the difference between mortgage payment protection insurance and income protection insurance?"
Mortgage payment protection insurance is a form of income protection insurance and specifically addresses covering monthly mortgage repayments.
"How long does mortgage payment protection last for?"
You can find policies which last between 1 and 75 years but most providers only cover you up to retirement age, and the maximum age insurers generally regard as acceptable as a retirement age is 70.
Once selected the policy will remain in force for the chosen length of time so long as you continue to pay the premiums.
"How long does mortgage payment protection insurance offer cover for?"
Depending on your policy, payouts will continue until you return to work or until the policy expires - which is usually at the end of a fixed period, or when you reach retirement. This is known as the benefit period.
"How much can you claim with mortgage payment protection insurance?"
In a typical scenario, the insurance covers your monthly mortgage repayments for up to 2 years and pays up to £2000 every month or about 65% of your monthly income, whichever is the lower figure. All payments you receive from your insurer are tax-free.
"How much does mortgage payment protection insurance cost?"
This depends on your own individual circumstances. You should always bear in mind that with insurance, the better the cover and the longer it lasts, the higher the premium you can expect to pay for it.