Mortgage payment protection insurance
PPI in general is sometimes seen as a product for the risk averse, so what is it and how does it work when applied to mortgages?
Well, MPPI will ensure that your mortgage payments are met (paid) if you are not able to cover them because of an inability to work. Typically this could be because you get ill and are unable to go into work, or perhaps because you get made redundant or become unemployed and therefore do not have the income coming in to cover the mortgage payments.
Therefore as can be seen, if you need peace of mind that your mortgage can be paid no matter what happens to you, then MPPI could be worth considering for you as it will mean that this protection is in place. As life in unpredictable then you could be left unexpectedly unable to work for whatever reason and worse still not have the savings to cover the mortgage payments. If this possibility concerns you, then this is where MPPI is attractive.
However, the peace of mind comes at a cost, like all insurance, and premiums vary from place to place, but generally for each lump of your monthly mortgage payments you are insuring there will be a certain charge applied. So if you never are unable to pay your mortgage (as we all would hope) it does mean you end up paying a lot of money for something you never use, as is of course the case with all insurance products, but you do have the peace of mind. What price peace of mind? This is a personal question that only individuals can answer on a case by case basis which is what makes PPI a personal choice.
More property related articles:
- First Time Buyers
- Mortgages and Regulation
- Roles in the mortgage process
- Legal Fees on a Mortgage
- Overseas property mortgages
