Do Mortgage Protection Insurance Companies pay when you need them to? What can stop yours from doing so? We show you what to watch out for in the small print so you can make sure your Mortgage Protection Insurance policy pays out when you need it most.

When you’re looking for a Mortgage Protection Insurance policy then it is important to read any terms & conditions very carefully.

As a rule of thumb, they tend to have a number of different exclusions which, if you are not careful, could prove very costly. At best it could mean that you are paying for cover that you won’t ever need – at worst it could prevent your policy from paying out when you make a claim.

Here are some common exclusions you will need to watch out for when choosing a policy as they are unlikely to be covered:

• Certain pre-existing medical conditions.
• Psychological conditions or back trouble.
• If you work less than a minimum number of hours per week.
• If you have been with your current employer for less than a certain number of months.
• If you’re sacked, take voluntary redundancy, resign, have prior knowledge of any redundancy or if your company has recently cut staff.
• Pregnancy.
• Alcohol or drug abuse.

Remember that there is also an overall initial exclusion period which means that you won’t be covered for a set time immediately after taking out your policy.

Are there any alternatives to Mortgage Protection Insurance?

Mortgage Payment Protection Insurance is, of course, not for everyone and there are a number of alternatives out there that could see you through a period of loss of income. Before taking out Mortgage Protection Insurance it would be worth considering whether you could use any of the following to cover your mortgage repayments:

• Employer’s sickness benefits that cover sick pay if you suffered an accident or debilitating illness.
• Redundancy payments if you have been with your current employer long enough to adequately cover your financial commitments.
• Alternative insurance, such as Income Protection Insurance or Critical Illness Cover.
• Substantial savings to see you through a period of unemployment or illness.
• Government help such as state benefits, support for mortgage interest or homeowners mortgage support.

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