Imagine this: You just bought your dream house. You’ve got the keys, the coffee maker’s plugged in, and life is good. Then, out of nowhere, you get laid off—or worse, a medical issue forces you out of work. Your mortgage bill? It doesn’t care.
That’s where Mortgage Payment Protection Insurance (MPPI) can step in like a quiet hero.
But is it really worth the monthly premium? Let’s break it down without the robotic jargon or sales-y fluff.
So, What Is Mortgage Payment Protection Insurance?
In plain English: MPPI helps cover your monthly mortgage payments if you can’t work due to an accident, sickness, or job loss.
It’s not the same as PMI (which protects your lender). MPPI is designed to help you stay in your home when life gets messy.
Some people confuse it with mortgage life insurance (which pays off your mortgage if you die). MPPI kicks in while you’re alive—but stuck in a tough spot.
How It Works (Without the Legalese)
Here’s how a typical MPPI policy works:
You lose your job or get too sick/injured to work.
After a waiting period (usually 30–60 days), your policy starts covering your mortgage.
Payments continue for a set period—usually up to 12 or 24 months.
You (hopefully) get back on your feet before the coverage runs out.
Note: You must be employed full-time when you buy the policy. And no, quitting your job doesn’t count—you need to be laid off or made redundant.
Real-World Example
A friend of mine, Lisa, got MPPI when she bought her condo. Six months later, the company she worked for went under. Total curveball. Her MPPI kicked in after 60 days and covered her $1,200 mortgage payment for almost a year. Without it? She might’ve had to sell or fall behind on payments.
That story stuck with me.
How Much Does MPPI Cost?
Cost depends on your:
Age
Health
Job type (some careers are considered riskier)
Mortgage amount
Coverage length (12 months vs. 24 months)
As a ballpark, you’re looking at £20–£50 per £100,000 of mortgage covered—but that varies a lot. It’s cheaper than you might think for the peace of mind it brings.
Compare quotes at places like:
Pros and Cons of MPPI
Pros:
Helps keep your home safe if you can’t work.
Gives you breathing room while you job hunt or recover.
Often customizable (you can choose how long the payments last).
Cons:
Doesn’t always cover self-employed or contract workers.
Can be denied for pre-existing conditions or voluntary unemployment.
There’s usually a waiting period before payments begin.
Pro Tip: Read the fine print. Some policies exclude certain illnesses or industries altogether.
Is MPPI Worth It?
If you have:
Little in savings
A job in a shaky industry
Dependents who rely on your income
…then yes, it might be a smart move. It’s one of those “better to have and not need” kinds of things.
If you’ve got a strong emergency fund (say, 6–12 months of expenses), you may decide to skip it and self-insure.
Alternatives to MPPI
Income Protection Insurance
Replaces a portion of your income, not just mortgage. More flexible, often better value.Critical Illness Cover
Pays out a lump sum if you’re diagnosed with a serious illness.Emergency Savings Fund
Old-school but still undefeated.
FAQ: Mortgage Payment Protection Insurance
Q: Can I get MPPI if I’m self-employed?
A: Sometimes, but it’s tricky. Many providers won’t cover self-employed individuals unless you can prove a steady income for the past 12+ months.
Q: When do payments start?
A: Most policies have a 30- to 60-day waiting period before benefits begin.
Q: How long does it pay my mortgage?
A: Usually up to 12 or 24 months. After that, you’re on your own.
Q: What if I have other debts?
A: MPPI only covers your mortgage. If you want broader coverage, look into general income protection insurance.
Final Thoughts
Mortgage Payment Protection Insurance isn’t flashy. It’s not something your real estate agent will bring up at the champagne toast. But in the background, it could be the thing that keeps your home your home during a storm.
Think of it like a safety net. Not always necessary—but when you fall, it can mean everything.
Need help comparing MPPI to other insurance types? Just say the word—I’m happy to create a quick side-by-side for you or help you assess your risk level.
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