Mortgage payment protection insurance is sometimes confusing especially if where you take it provides little information. Lenders on the high street often fail to provide you with this valuable information such as regarding the exclusions. They can also charge way over the odds for the cover when compared with the independent provider. The independent provider would also generally give you the advice you need before taking out cover so you would know whether a policy was suitable or not.

The first thing you need to know is that the income supplied from your mortgage payment protection insurance is the amount of money you choose to insure of your repayment. This would be up to the limit of your mortgage repayment set by the provider and they pre-agree to your chosen sum when you apply. This income is then tax free for a certain period of time specified by the provider once you had been unemployed or incapacitated for a certain length of time. Some providers would put the deferment period at 30 days, some 60 and others 90 so it does pay to check before you take out the protection. You could then continue to receive your benefits over 12 months or the provider might allow a claim to be made for up to the 24th month should you need to claim for this long.

You could have carer cover in your protection if the provider has been generous enough and make a claim if you needed to stop at home to take care of a close family member who became incapacitated. However do check with your provider at the time of applying for the policy to find out if you can claim for this. You could also tailor the policy to suit your circumstances. You might chose just to take a policy for incapacity alone or you could just insure against redundancy alone. Of course you would also be able to cover both events under the same policy if you wanted the security of both.

Mortgage payment protection insurance - MPPI - can be a better form of safety net than risking claiming State benefits. State benefits only provide money towards you maintaining the interest part of your mortgage repayments and up to so much.

Generally it would be 13 weeks before seeing any money if you can successfully claim. You would of course also have to be eligible to make a claim from the State. Savings might also let you down as you could deplete many years of life savings before you had recovered enough to go back to work or before you had the chance to find work again. With protection you know how much you get towards your repayments and how long you would have to rely on them if needed. However you do have to use the information provided to ensure that mortgage insurance is suitable as there are exclusions which have to be checked against your lifestyle.

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