Mortgage Unemployment Insurance

What is Mortgage Insurance / Mortgage Payment Protection Insurance?

Mortgage Payment Protection Insurance is a policy which allows you to protect your income or mortgage repayments against the problems caused by suffering from an accident, sickness or unemployment which prevent you from earning an income.

The cover is available to protect your mortgage or rent payments, general income or repayments on loans and is sometimes referred to as an accident, sickness and unemployment policy.

Your policy will pay out a set monthly benefit for up to 12 months (24 months in the case of some insurers) to allow you time to either recover from your accident or to find new employment.

Do I have to have a mortgage to take this protection?

You do not need to have a mortgage to be eligible for accident, sickness and unemployment policies (ASU) in general. Some insurers will offer to protect a percentage of your general monthly income instead of a particular mortgage payment.

If you do have a mortgage or a rent payment to make each month, the insurance company will cover the payment amount and in some cases, an additional benefit to help you cover other household bills and outgoings.

How long will my accident, sickness and unemployment policy pay for?

Your mortgage payment protection policy will protect you for a maximum of 12 months, or until the time when you are able to return to work if this is before the end of your 12 months.

Some insurance companies will offer up to 24 months mortgage payment protection insurance for an extra premium.

How much can my mortgage payment protection pay out to me?

The maximum amount that your policy can pay out to you each month is different depending on whether you are protecting a mortgage/rent payment, your general income or are looking for loan protection insurance.

Generally speaking if you are looking to protect your income or a loan payment, the insurance company will base the maximum benefit on your income. In most cases policies will be allowed to cover up to between 50% and 65% of your monthly gross (before tax) earnings.

With mortgage or rent payments, most policies will protect the whole of your payment plus a little extra to allow you to continue paying household bills whilst you are incapacitated or out of work.

I've just been told that I will be made redundant, can I still take cover?

Unfortunately you are only able to take redundancy insurance when you are not aware of any impending unemployment. Once you are told you are to be made redundant or once your company announces that redundancies are to be made you are no longer able to take this part of the policy.

You do however remain eligible to take the accident and sickness areas of the cover.

I've just started a new job, can I take out cover immediately?

So long as you have been in continuous employment (ie you went straight from one job to another) you are able to take your accident, sickness and unemployment cover immediately.

If however you had a period of unemployment between your two jobs, you must wait for six months before insurance companies will be able to offer you cover.

If the time off between jobs was fairly short, it is worth speaking to an advisor who may be able to find cover with one of our insurance companies.

I work in an industry which is suffering from heavy redundancies at the moment

With the current 'credit crunch' many people in industries such as banking and finance are finding it harder and harder to get mortgage payment protection insurance.

It is true that some insurance companies are no longer accepting applications from people working in these industries, because of the high risk of redundancies, however a large number of policies are still available at competitive prices on the market.

If you work in one of these troubled sectors, please speak to one of our fully trained advisors who will be able to recommend a company who will be able to offer you mortgage payment protection or unemployment insurance.

If I take my cover today and am told I will be made redundant tomorrow, will I still be able to claim?

All new accident, sickness and unemployment policies come with an initial exclusion period ranging from 60 to 120 days.

Whilst you are still inside this one off exclusion period, you will not be able to make an unemployment claim.

This exclusion period is a one off period (which some insurers will waiver if you have an existing unemployment cover) to prevent people cashing in from redundancies.

Is Mortgage Payment Protection Insurance easy to arrange?

Your mortgage payment protection insurance couldn't be easier to organise.

The application process is quick and easy and does not require you to complete any paperwork. You can simply apply direct online for your policy or speak to an advisor who will be able to arrange the policy immediately and have you under cover within ten minutes.