last updated October 31st, 2025
When buying a property, you have to think about the long term future and what happens if you get ill or die. These policies are not connected with protecting the property itself from damage (see Insurance - protecting your home) but are about the financial security of your family.
Mortgage Payment Protection Insurance (MPPI) will cover your mortgage repayments for an agreed period if you cannot work due to illness or an accident. This cover can last for a long time and as along as needed when recovering.
This policy cover you if you get a serious illness and usually it offers a lump sum payout. It is up to you how you spend this. You need to check what illnesses are covered, what is considered 'critical' and if existing illnesses are covered.
Also sold as a 'Decreasing term life insurance policy' this pays off your mortgage if you pass away. No excess over the outstanding mortgage is paid so your house is secured but no money is given for other costs to your family.
Also known as Family Income Protection insurance, this pays your family a monthly sum if you die when the policy is active for the period defined in the policy. The policy is similar to Life Insurance but the money can be used on whatever your family chooses. It is up to you to decide what this monthly sum is which is reflected in the premiums.
