Mortgage Payment Protection Insurance
The most common terms that upheld and validate an MPPI contract are :
The client must be 18 and 64 - the younger the cheaper
Pre-existing medical conditions are made aware of and are not covered for
The client must have been working a minimum of 16 hours for the last six months prior to taking out a contract.
The client can not currently be off work , suspended or aware of any possibility or forthcoming redundancies.
The cover can be cancelled by the insurer at any time subject to specified minimum notice period.
The client cannot claim within the first 3-6 months - especially for redundancy but sometimes sickness and accident cover can still be backdated.
The client cannot be employed through contract work lasting under 2 years at a time.
The symptoms of sickness caused by stress, depression and alcohol abuse are exempt from cover.
The CML (Council Of Mortgage Lenders) and ABI (Association Of British Insurers)
state that 55% of homes owners should have this policy, while those with more limited risk can get by without - and may actually have been miss-sold this policy.
The kind of people of who wont necessarily benefit from MPPI are those with life insurance policies that have ‘critical illness’ elements , those that have sick pay benefits from there employer or know they will be in receipt of redundancy packages and government benefits if there position is terminated by an employer.
Many MMPI have responded to the claims of people who may not necessarily need the full coverage of the policies by offering them in ‘doses’.
A half dose may feature the benefits of accident and sickness cover but not unemployment.
