Your mortgage payment protection insurance provider will pay you a monthly income for a set term if you cannot work, with most policies offering a payout term of up to two years.
Some providers offer you different options for how your policy can be paid out. For instance, you might choose to cover the exact cost of your mortgage or a little extra to cover other bills too (however, as expected, the more you ask for, the higher your premiums will be).
You won’t always be able to claim MPPI immediately – you will usually need to be off work for a specified number of days (ranging from 30 to 180 days) before claiming MPPI. This is referred to as the waiting period, and the longer the waiting period, the cheaper your policy is likely to be.
It is important to note that if you are off sick for more than two years, MPPI is unlikely to cover all of your needs. In this case, income protection insurance may be more suitable as this can pay out until retirement, death or your return to work. Income protection, however, doesn’t pay out in the event that you become unemployed.