Mortgage Payment Protection Insurance- Helpful Tips

2007-03-08 10:33:40

( Financial )



Mortgage carries a lot of risk because it is usually a long-standing financial obligation. Thus, a lot of people turn to Mortgage Payment Protection Insurance, or MPPI, to help them continue mortgage repayments when they are out of work for an extended period due to illness, accident or unemployment. However, many are unaware that there are things that you need to know before getting such mortgage protection insurance.

Compare as many mortgage protection policies as possible

Do not be tempted to immediately take out the mortgage payment protection insurance that mortgage lenders offer you together with your loan. First, you have to determine how much more the mortgage protection coverage will cost you per month. Compare these rates to other insurance providers' mortgage insurance quotes, which are also available over the Internet. However, you must remember that the cheapest policy is not always the best.

You should also review the exclusions or conditions that are not covered by mortgage protection plans. There is no sense in getting the insurance if you won’t be able to make a claim because the circumstances that you are in, such as temporary work or seasonal employment, are part of the exclusions of the mortgage payment protection insurance.

Mortgage protection plans usually require certain period of involuntary unemployment before you could make a valid claim. You should look for coverage that has the shortest required period, which could vary from 30-60 days.

Check for duplication

You may no longer need to take out Mortgage Payment Protection Insurance if you have a Permanent Health Insurance policy. Check the levels of duplication of the terms of both policies and decide whether the added cost of getting MPPI is worth it.

Mortgage protection plans also have some similarities with the Critical Illness Insurance. If you made a legitimate claim under your critical illness policy, you may also be entitled to a valid claim under your Mortgage Payment Protection Insurance.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.