Mortgage Payment Protection Insurance - What Does It Cover & How Does It Work?

Mortgage payment protection insurance is also known as ASU insurance which stands for Accident, Sickness and Unemployment as this is what a mortgage payment protection insurance policy covers you for and will pay your mortgage for you under those circumstances. Generally speaking, in order to qualify for mortgage payment protection you need to be existing employment for a at least 6 months to 1 year and be working at least 16 hours a week. So how long does the mortgage payment protection insurance pay your mortgage for you? Well usually its for between 12 to 24 months or until you find work, whichever is the sooner.

With mortgage payment protection you usually have a period of the first 30 days to 6 months where the mortgage payment protection insurance will not pay out. This is because the mortgage payment protection insurance company want to be sure that you did not already know that you were about to lose your job.

If you are a self employed person or working on a fixed term contract, then you may have difficulty getting cover for unemployment with a mortgage payment protection insurance provider as it is more difficult to prove a self employed person is unemployed.