What does mortgage insurance cover?
Mortgage insurance can be used to cover your mortgage outgoings during enforced unemployment, and is not designed to insure your mortgage repayments over the entire course of your mortgage. Most mortgage insurance polices last for a maximum of one year, but a minority of insurance polices will pay out for two years. Mortgage insurance can cover capital and interest mortgage repayments, as well as other mortgage-related outgoings such as premiums for endowment policies. However, mortgage insurance will not pay out under various circumstances, including if you’re aware that you’re going to make a mortgage claim before taking out the mortgage payment protection insurance policy.