Keep your mortgage paid if you can’t work.
Mortgage payment protection insurance covers your monthly mortgage payment if accident, sickness or involuntary unemployment stops you working. It is short-term cover — typically 12 to 24 months — that bridges the gap while you recover or find new employment. Misunderstood by many and mis-sold by some, good MPPI is a genuinely useful product when it is the right fit.
MPPI — what it does and what it does not cover
Mortgage payment protection is straightforward in purpose but requires careful scrutiny of the policy terms. Understanding the exclusions is as important as understanding what is included.
The accident and sickness element pays your monthly mortgage payment if you are unable to work due to illness or injury. Cover typically begins after a waiting period of 30 to 90 days. Better policies use an own occupation definition, meaning you cannot perform your specific job. Pre-existing conditions are generally excluded from MPPI, unlike some income protection policies. We check the definition and exclusions applied before recommending any policy.
The unemployment element covers compulsory redundancy only — meaning your employer made your role redundant. Voluntary redundancy is typically excluded; self-employed people cannot usually claim under the unemployment section; and there is typically an initial exclusion period of 90 to 180 days from the policy start date. If you are in a sector with known redundancy risk at the time of application, some insurers will decline the unemployment element.
The policy pays your actual monthly mortgage payment, up to the policy’s maximum benefit limit. Some policies also cover associated costs such as buildings insurance premiums. The benefit is paid directly to you, tax-free, for the claim period — up to the policy’s maximum benefit period of 12 or 24 months per claim.
MPPI covers your mortgage payment only for a limited period. Income protection replaces your income broadly, for as long as you are unable to work. For most people with a mortgage, income protection provides better value and more comprehensive cover. MPPI may be more appropriate where budget is very tight, where you specifically want cover for redundancy, or where health conditions make income protection unavailable or very expensive.
When MPPI makes sense — and when income protection is better
MPPI is a useful product when it is the right fit. It is not a substitute for income protection, but there are specific situations where it provides genuine value — particularly for clients who specifically want cover for involuntary redundancy.
- You want redundancy cover as well as accident and sickness cover
- Budget is very tight and you need the lowest possible premium
- You have a specific short-term concern — for example, a period of job insecurity
- Health conditions make full income protection expensive or unavailable
- You want mortgage-specific cover to sit alongside other protection
We will always be honest with you about whether MPPI or income protection is the better fit for your situation. If income protection is more appropriate, we will tell you so — and arrange it instead.
Discuss what is right for me →| Feature | MPPI | Income Protection |
|---|---|---|
| What it pays | Mortgage only | % of income (broader) |
| How long it pays | 12–24 months | Until you recover |
| Redundancy cover | Yes | No |
| Mental health | Limited | Comprehensive |
| Best for | Redundancy risk | Long-term protection |
MPPI questions answered honestly
No. MPPI covers your mortgage payment only, for a limited period of 12 to 24 months per claim. Income protection replaces a proportion of your overall income for as long as you are unable to work — potentially until retirement. For most people, income protection provides better value and more comprehensive cover. We explain both options honestly and recommend the right fit for your situation.
Yes — the unemployment element of MPPI covers involuntary redundancy. This is the main advantage over standard income protection, which does not cover redundancy. However, cover applies to compulsory redundancy only — voluntary redundancy is excluded — and there is typically an initial exclusion period of 90 to 180 days from the policy start date.
Generally no — MPPI typically excludes pre-existing conditions from the accident and sickness element. This is a key difference from some income protection policies. If you have a relevant pre-existing condition, we will establish how it is treated under the specific policy before recommending it.
Self-employed people can access the accident and sickness element of MPPI, but generally cannot claim under the unemployment section — because self-employed individuals choose to cease trading rather than being made redundant in the conventional sense. For the self-employed, income protection is typically the more appropriate product.
For most people with a mortgage, income protection provides better overall value — it pays more (your income broadly, not just your mortgage), for longer (potentially until retirement, not just 12 to 24 months), and covers mental health more comprehensively. MPPI is better when budget is very tight, redundancy cover is a priority, or health conditions make income protection very expensive.
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Free consultation. We compare MPPI and income protection honestly and recommend whichever is genuinely better for your situation.
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