Income Protection

Protect your Mortgage

Mortgage Payment Protection Insurance is designed to provide you with an income if you're unable to work because of illness or injury. Mortgage payment insurance aims to put you back to the position you were in before you were unable to work. It pays a regular tax- free monthly income.

Primarily, there are two main types of Mortgage Payment Protection Insurance, they are:  

Short Term Protection

Short Term Mortgage Payment Protection Insurance is used for un-employment, redundancy, accident and sickness; you may even hear it referred to as ASU (Accident, Sickness and Un-employment).  This type of protection often starts quickly, after a matter of weeks, and is generally payable for 12 to 24 months according to the protection being provided and the provider concerned.

Long Term Protection

Long Term Mortgage Payment Protection Insurance is primarily used to support you between when your employer, or short term protection plans, stops paying and the end of your mortgage term or even retirement, whichever is the latter. 

Long Term Plans do not include protection against un-employment, this is usually restricted to short term protection only, although up to 24 month cover could be possible.


Did you know ?

Did you know: Insurance companies have different definitions regarding what constitutes long-term illness.

Usually, to trigger benefits you must be able to demonstrate that you're unable to follow your usual occupation as a result of sickness or accident.  

However, there are different styles of qualification regarding what type of work you are unable to follow: Some policies state that you must be unable to do “any occupation” before benefits are paid, while others might state “own occupation” –

Exercise caution, always seek advice from an independent adviser....

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Consider this....

  • Multiple Claims
    Most ASU policies only permit multiple claims totalling up to the cover time limit, then may apply restrictions....
  • Exclusion Periods
    Short Term Plans tend to have "Exclusion Periods at outset, these can differ and may exclude the first 120 days from purchase...
  • Change in Circumstances
    If you change jobs you may need to advise your provider... if you don't you may invalidate a claim?

    An “Occupation Class” system is used and not all providers operate the same structure....
  • Taxation
    Short Term Protection benefits are currently non-taxable, although this may change in line with any amendments to legislation.