Your mortgage is one of the largest financial commitments you are likely to take. Mortgage protection is therefore an important part of your mortgage requirements. Budgeting for your mortgage protection is an important part of the mortgage process, as these payments are often overlooked when calculating how much you can afford to borrow.

With most mortgages the lender will insist on you having buildings insurance to protect their security.

There are many types of mortgage protection available. These commonly cover circumstances like
Critical Illness
Redundancy
Long Term Sickness
Death
Buildings Insurance
The common forms of mortgage protection are M.P.P.I. (mortgage payment protection insurance) C.I.C . (Critical Illness Insurance) life assurance.

Government Assistance

Any mortgages taken since 1995 do not qualify for government assistance for the first nine months and even then you must be eligible to claim.
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Mortgage Payment Protection

You can buy insurance cover to protect your mortgage payments from an accident or if you become ill and cannot work, or become unemployed, or to provide full cover for accidents, sickness and unemployment. (A.S.U.) The terms and conditions under which you can claim can change. Our advisors will endeavour to make these conditions as clear as possible.
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Critical illness Insurance

Critical illness cover is an insurance where the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses listed in the insurance policy. The policy may also be structured to pay out regular income. The policy may require the policyholder to survive a minimum number of days (the survival period) from when the illness was first diagnosed. The survival period used varies from company to company, usually 30 days. The contract terms contain specific rules that define when a diagnosis of a critical illness is considered valid.
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Income protection

IPI (Income Protection Insurance) policies sometimes called PHI (Permanent Health Insurance) offer a number of benefits in comparison to other insurance policies such as accident, sickness and unemployment insurance. Benefits are payable when the policyholder becomes incapacitated and after the deferred period has passed and continue until the earliest of death, recovery of health, retirement or the term of the contract. Benefits are paid usually weekly or monthly and are free of tax.
The insurance company cannot cancel or refuse to renew the policy provided that the policyholder continues to pay the premiums. A waiver of premium option may be provided whereby premiums for the IPI policy are not required while benefits are being paid from the policy, but the policy cover continues as normal.
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Life Insurance

Life insurance can be divided into two main categories;
Temporary insurance
Permanent insurance
Temporary or decreasing life insurance is suitable for a defined time period that is named when the contract is initially put into force. Permanent is insurance that remains in force until the policy matures, or is cancelled for other reasons. e.g. if not fully paid up.
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Types of Protection Available