Mortgage payment protection can be taken out to ensure that if you should become incapacitated or unemployed you would have an income so that you could put it towards being able to service your repayments each month. Without something to fall back onto you could eventually fall into arrears which might lead to the lender repossessing your home. You would be able to claim on your policy once the period of deferment had passed which would depend on the provider.

You could be eligible to make a claim on the insurance once the 30th day had gone by but with some providers you might need to wait for as long as the 60th or the 90th day to make your claim. You would then have an income that you could rely on for either 12 months with some providers but it could be up to as long as the 24th month with others. If you were taking out a policy that paid over the longer term should you need to claim of course, then you would pay more in premiums each month. However at the same time you would have to bear in mind that if you were to have to claim for up to the length of the policy the benefits would cease once this term had been reached. Also give some thought to the fact that you would have to find the money yourself for your repayments during the 90 days that you could not claim on your policy.

You might take out your mortgage payment protection insurance (MPPI) to cover both unemployment and incapacity in the same policy in which case you would be eligible to claim should you suffer from either of these events. If it suited your lifestyle more then you could just protect against unemployment alone or you might choose just to take a policy that would payout in the event you became incapacitated. Check with the provider to find out if a claim could be made if you should need to give up full time work in order to stay at home and take care of a close family member. If you have chosen a very generous provider then you could be given this additional form of security for your mortgage repayments.

You do have to check the terms of any mortgage payment protection policy that you are thinking of taking out as there will be at least the most common exclusions in your cover. For instance working in a full time position and doing so for a period of time at the time of taking out the protection would be essential.

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