Mortgage Payment Protection Insurance

Mortgage payment protection insurance is a kind of PPI or protection payment insurance that specifically insures the payment of mortgages in the event the policyholder is unable to continue paying the mortgage due to disability. Like other types of protection payment insurance, MPPIs are designed to help pay your mortgage, and are marked differently from unemployment insurance. While a policyholder needs to be unemployed in order to make a claim, the policyholder needs to be unemployed due to disability in order for the claim to be approved.
Just like with the usual PPIs, MPPI policies also have the same exclusions, restrictions, and eligibility requirements in order for the policyholders to be compensated when they make their claims. The reason why many claimants are denied is because many of them are originally ineligible for the policy when they took it out. A fraudulent tactic used by many lenders in order to trap borrowers into a scheme where they will be denied a claim they have faithfully paid a premium for.
To avoid being in this predicament, borrowers must be conscientious in reading any mortgage payment protection insurance contract they enter into. You must be certain you meet all the eligibility requirements of the policy before you sign the agreement. You must also be aware of all exclusions and restrictions that may be in the fine print of the policy.
It is also advisable that you buy the policy at an independent provider instead of availing it from the same lender you are borrowing from. Most lenders will charge 5 times the premium compared to other independent MPPI providers. Some even go so far as to tell the borrower that a mortgage loan will not be approved without the accompanying protection insurance policy being bought. This is an outright lie and you must distrust lenders who tell you this immediately.
If you have enough savings to provide for you in case you become unemployed, you may opt to not purchase a mortgage payment protection insurance policy. In some cases, it may actually be better to just take out a loan to pay off your monthly mortgage when you reach the point where you are unable to pay it off promptly because of disability or other circumstances beyond your control.
This type of insurance is also redundant when you have enough support system (well to do relatives willing to give you personal loans or deep and long term investments that can cover your debts) to be able to pay off your monthly mortgage. Also, if you have a steady stream of income that is assured of even when you stop work or become unable to work for a period of time (royalties for a writer, income from a business, etc).
If by some instance you have purchased a mortgage payment protection insurance policy and have been denied a claim or feel that you have been misled when you took out the policy, you can initiate a claims process to recover your premiums paid by complaining to the lender or provider that sold you the policy. If unsuccessful, you can elevate the complaint to the proper regulating body or enlist the help of a claims assistance company.

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