About our Mortgage Payment Protection Insurance

Policy Overview

Mortgage Payment Protection Insurance (also known as MPPI) is designed to cover your monthly mortgage payments if you are unable to make them because you have an accident, or become sick or unemployed.

There are different levels of insurance cover. You can choose to protect your mortgage repayments in case you are unable to work because you have an accident or become sick.

The insurance can also protect you if you unexpectedly lose your job or have to leave your job to become a full-time carer for a member of your immediate family.

Types of Cover

Unemployment Insurance

This pays a benefit if you become unemployed or have to give up work to become a carer. Your policy documents will have a definition of 'becoming unemployed' or 'becoming a carer'.

In general, 'unemployment' means you have no paid work or temporary work and have a Jobseekers Agreement with the Department for Work and Pensions in the UK. 

Please check the policy wording for full details of restrictions.

Accident and Sickness Insurance

This pays a benefit if you are unable to work due to accident or sickness, as certified by a doctor. Some insurers will also cover you for extended periods of hospitalisation. Normal pregnancy or childbirth is not classified as accident or sickness and is not covered by this insurance.

Please check the policy wording for full details of restrictions.

Unemployment, Accident and Sickness Insurance

This covers both of the above.

You cannot choose unemployment-only cover if you select a 180-day waiting period (please see the 'Excess Periods' section below).

Excess Periods

An excess period is the number of days you are off work that you have to wait before your entitlement to benefit starts.

Different excess periods are available which determine how long you would need to be away from work before you would become eligible for payment.  For example, 30 days excess would require you to be away from work for 30 days before you would become eligible and would wait a further 30 days before you receive your first payment.

Please refer to the policy wording for full description of excess periods or click here for further information.

Benefit

The ‘benefit’ is the monthly amount that will be paid out if you claim. Up to 25% of this amount can also be used to cover related expenses such as home or life insurance premiums. The benefit can be up to £2,000 or 50% of your gross income – whichever is lower.

It is important that the benefit you choose for your mortgage cover is not more than your mortgage commitments, as the extra amount would not be paid if you made a claim.

If you want to cover more than just your mortgage, you may want to consider income protection cover. This will allow you to cover a percentage of your income which you can then use for any purpose.

Please remember: This is a short term protection policy and payments are made up to a maximum of 12 months.

Monthly Cost

We work out the cost of our Mortgage Payment Protection Insurance as a monthly cost for every £100 of monthly benefit you would get. This amount shows how much this insurance costs you each month for every £100 in benefit that you would get each month if you made a successful claim for accident, sickness or unemployment.

For example, if the amount is £5, this means that for every £5 you pay as a monthly premium, you will get £100 for each full month that the claim lasts (after the waiting period on the policy). You can use this amount to make comparisons with the cost of insurance from other providers. You should also compare the cover offered and the way in which the benefits are paid out.

A typical monthly cost for British Insurance Services Mortgage Payment Protection is £2.67 for every £100 of monthly benefit. This cost is based a 30 year-old looking to receive £1,000 a month from an accident, sickness and unemployment policy, opting for back to day one cover who will pay £26.70 a month with British Insurance Services. The monthly cost is inclusive of Insurance Premium Tax at the current rate of 6%.

This Payment Protection Insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income.

For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk

Eligibility

Please note: This checklist is provided as an overview. It is important that you read the eligibility conditions when completing an application.

To ensure you are eligible to take out a mortgage payment protection policy, you must confirm that the following statements apply:

    • You are aged between 18 and the maximum age

Cover will automatically cease after you retire, when you reach state pension age, if you die or if you stop paying the premiums. Cover will also end when you reach the maximum age which may vary depending on the insurer. Please see the policy wording which you will be able to read once you have received a quote.

    • You have a mortgage

You must have a mortgage in place on your main residence

    • You are living and working in the UK

You must have lived permanently in the UK for at least six months and been in permanent employment, working at least 16 hours a week.

    • You have worked for the last six months

You are only eligible for this cover if you have worked continuously for the past six months

    • You have no excluded medical conditions

You may not be covered for any pre-existing medical conditions or injuries as a result of an accident before the start of your cover. Please check your policy wording.

Other eligibility criteria may apply and you should refer to the policy wording for full details.

Exclusions

Please note: there are exclusions and limitations that may apply to your policy. The exclusions listed below are not exhaustive and you should read the policy summary and policy wording documents fully.

  • Pre-Existing Medical Conditions

You may be unable to claim for any condition, injury, illness, disease, sickness or related condition or associated symptoms, whether specifically diagnosed or not which you knew about (or ought reasonably to have known about) at the start date, or for which you sought or received advice, treatment or counselling from any doctor during the 12 months immediately before the start date.

  • Self Employed

If you are self-employed and want to claim unemployment benefit you will need to provide satisfactory evidence that you have ceased trading and are entirely without gainful employment. This includes helping with, managing or carrying on of any part of the day-to-day running of a business. You must be available for and actively seeking work. You must also be registered as unemployed with the Department for Work and Pensions and have signed a Jobseeker's Agreement in the United Kingdom.

  • Contract workers

If you require unemployment cover, you should read the appropriate section in the policy wording which is available throughout the application process.

  • Initial exclusion period

There is a 120 day initial exclusion period for unemployment or carer benefit. You will not be covered for unemployment that arises from any programme of job losses, any departmental or company restructure or merger with another company announced by your employer before the start date or within 120 days after the start date of your policy. This may be waived if you are transferring cover from another provider.

  • Maximum insured benefit

The sum insured under this policy and any other similar insurance policies must not exceed 50% of your monthly earned income before tax. If you exceed this limit benefit will be reduced.


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We're proud to be regulated.

British Insurance Services is a trading name of Paymentshield Limited which is authorised and regulated by the Financial Conduct Authority. Our Financial Services Register number is 312708. You can check this on the Financial Services Register by visiting the FCA’s website or by phoning them on 0800 111 6768.