Mortgage Payment Protection Insurance (MPPI) from Legal & General provides peace of mind for your customer that their mortgage payments will be protected in the event of accident, sickness or involuntary unemployment – to help them keep a roof over their head in difficult times.

What is covered?

The table below gives an overview of what is covered and the options available under this policy.

For full details of what is covered, including the limits, exclusions and eligibility criteria, please refer to the MPPI Key Features  PDF: 935KB or MPPI Policy Booklet  PDF: 881KB .

Cover options

There are three cover options to protect your customers’ mortgage payments:

1. accident, sickness and unemployment cover
2. accident and sickness cover
3. cover for unemployment only.

Deferred period

All policies are subject to a deferred period. This is the period at the start of the claim when benefit is not paid. The customer will need to make provision to cover the mortgage payment for this initial period. There are differences in premium depending on the deferred period selected, the premium may be lower if a longer period is selected. Here are the options:

1. 30 days for disability and 30 days for unemployment.
2. 60 days for disability and 60 days for unemployment.
3. 180 days for disability and 30 days for unemployment.
4. 180 days for disability and 60 days for unemployment.

Monthly benefit payment options

For even more flexibility, we offer two ways of paying monthly benefit to the customer when they make a claim:

What isn't covered?

Accident and sickness cover:

The significant exclusions and limitations for accident and sickness cover are:

• there is no cover in the first 18 months from the policy start date, or the date the customer adds accident and sickness cover to their policy, for any medical condition for which they have had symptoms, treatment or medical advice during the previous 12 months;
• normal pregnancy;
• stress, anxiety, depression or any nervous disorder, unless confirmed by a consultant;
• back or back related conditions, unless confirmed by a consultant; and
• elective or cosmetic surgery which is not medically necessary.

While claiming for stress, anxiety, depression, any nervous disorder or back related conditions the customer must remain under the continuing care of a consultant or the treatment must be under the direction of a consultant.

Please note that for these disabilities, being solely under the continuing care of the customer’s doctor or a counsellor is not sufficient for us to pay monthly benefit.

We define a consultant as being a medical specialist who is a member of an appropriate Royal College that recognises the person as a specialist in the UK, Channel Islands or Isle of Man.

Check out section 4 of the MPPI Policy Booklet  PDF: 881KB for full details of the exclusions and limitations for accident and sickness cover.

Unemployment cover:

We will not pay monthly benefits due to unemployment for:

• any unemployment that the customer was notified of by their employer before the date they applied for this cover;
• any unemployment that occurs within 60 days of this cover starting if the customer is a new borrower;
• any unemployment that occurs within 120 days of this cover starting if the customer is an existing borrower;
• any unemployment that occurs within 60 days from the date unemployment cover is added to the policy provided that this cover is added after the policy has been active for 120 days;
• any unemployment that occurs within 120 days from the date unemployment cover is added to the policy, if the cover is added within 120 days of the policy starting;
• unemployment that is voluntary, including resignation, or unemployment due to misconduct;
• unemployment after temporary, casual or seasonal work, or if unemployment is a regular feature of the customer’s work;
• unemployment resulting from failure to meet performance standards or targets, set by the customer’s employer, in the first 6 months after starting work with a new employer;
• unemployment caused by the customer losing their driving licence from a motoring offence or combination of offences;
• any temporary periods the customer is without work if self-employed.

A new borrower is a customer who arranges their MPPI policy to start within 14 days of completion of a new mortgage, further advance or a mortgage product switch.

An existing borrower is a customer who arranges their MPPI policy to start more than 14 days before or after the completion of a new mortgage, further advance or a mortgage product switch.

Check out section 5 of the MPPI Policy Booklet  PDF: 881KB for the full exclusions and limitations for unemployment cover.