One of the most common types of insurance, particularly amongst home buyers is Mortgage Payment Protection Insurance or MPPI. Like most of the other insurances within the income protection bracket, Mortgage Payment Protection Insurance is a way of maintaining your debt / mortgage payments should you get sick, be struck down with an illness (in some cases terminal) or simply become unemployed. You can also get MPPI cover to cover you should you suffer an accident. Basically anything that will stop you effectively earning an income and therefore servicing the debt associated with your mortgage. Of course, it’s not just mortgages that can be protected. There are numerous PPI plans out there to protect a wide range of debt including personal loans and even credit cards. More often than not, you are offered, sometimes forced, to take this particular type of insurance. This isn’t just to protect you, it is to protect the lender also. To apply for most types of PPI, the usual criteria applies. Those being between 18 - 65, being employed in some form and working at least 16 hours per week. Most PPI schemes will pay out for a period of 12 months although in some cases as many as 2 years (24 months).
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