Mortgage Payment Protection Insurance Guide

What's covered and what's not covered?

What’s covered

Mortgage Payment Protection Insurance gives you the reassurance that the following is covered:

• Your mortgage payments (and of course your Payment Protection premiums) paid for up to 12 months if you lose your job or are off work because of sickness or an accident.
• Less time to wait before you can make a claim – 30 days instead of 9 months. We’ll refer to this as the waiting period.
• The option to protect your life insurance and buildings/contents premiums provided the total amount covered does not exceed £2,000 (or 125% of your mortgage payment, whichever is smaller).
• You can arrange joint cover so that you and your partners can split the benefit amount under the same policy.
• Carer cover – if you have to become a carer for a family member, you’ll receive a lump sum equal to 12 times the monthly benefit up to a maximum of £24,000.

What's not covered

We’ll be honest, your policy won’t cover every eventuality. But we want to make sure that you understand what isn’t covered before you buy.

If you are made unemployed

• Any unemployment which occurs or you are made aware of within 60 days of the start of your policy (or 120 days if cover is arranged more than 12 weeks after the mortgage).
• Normal seasonal unemployment.
• If you are made unemployed by circumstances which you were aware of or ought to have been aware of when you applied for cover.
• Voluntary redundancy or resignation.
• Any period of unemployment for which you have received payment in lieu.
• If you are dismissed due to your own acts, omissions or negligence.
• If you reach the end of a fixed rate contract unless you’ve been employed on a yearly renewable contract which has been renewed at least once or you have been in employment with the same employer for a continuous period of 2 years.

If you are self-employed

• Your business must have totally and permanently ceased to trade.

If you are making a carer claim

• The sickness, disease, condition or injury of the person being cared for existed before the start date of the term of cover.
• You become a carer and your work ceases for any other reason not associated with the need to become a carer.

In the case of accident or sickness

• You are claiming for an accident or illness which you saw or arranged to see a doctor for or were aware of up to 12 months before your policy commences. However if you have been free from symptoms and have not consulted or received treatment from a doctor within a 2 year period prior to a claim this exclusion will not apply.
• You are unfit to work due to a normal pregnancy related condition.
• You have been under the influence of alcohol or drugs.
• You were injured or became ill due to war, civil war, military activity other than normal peace time activity, rebellion, revolution, riot or other civil commotion.

Full details, including conditions and exclusions will be provided in your policy document. This policy is only available to residents of the United Kingdom.

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