Most people will agree that their home is their most important material possession, yet if mortgage payments cannot be made, the security of a home can be taken away. Becoming unemployed can cause many problems, not least the fact that there simply may not be any money to pay the bills.
You can buy cover to protect your mortgage payments if you have an accident or become ill and cannot work, if you become unemployed, or to provide full cover for accidents, sickness and unemployment. The terms and conditions under which you can claim differ with every policy, so you should always check them very carefully.
Accident, Sickness and Unemployment policies can be presented under several different names. ASU policies protecting mortgage repayments are often called Mortgage Payment Protection Insurance policies or just MPPI for short. They may be called just mortgage protection insurance policies. Accident, Sickness and Unemployment policies protecting loan repayments can be called Loan Protection Insurance or Loan Payment Protection Insurance.
Some are simply just called payment protection insurance or income protection insurance if they are designed to protect living expenses.
What ever the name used to describe the insurance it will usually have certain general characteristics. Equally there will often be key differences between one Accident, Sickness and Unemployment policy and another and you will be wise to appreciate the differences so that you can make an informed decision on which policy to take or perhaps not to take an Accident, Sickness and Unemployment policy at all.
Most of these Accident, Sickness and Unemployment policies are purchased by those who think they may struggle with maintaining certain repayments in the event that they are unable to work for a period of time due to sickness, accident or involuntary unemployment.
