What is an initial unemployment exclusion period?

I have been looking online for mortgage payment protection insurance and all the plans seem to have this unemployment exclusion period, what does mean?

Question asked by Kashif Ahmed
Compare Top 10 UK
 Protection
Insurers
 
Takes approx. 60 seconds
Type of Policy
Level of Cover
per
month
Date of Birth
Loading your options...
Thank you for using our Quote Tool
If you need some help, just call us!
T: 0208 432 7333
Our in-house Experts are here to provide FREE impartial advice!
Our Experts can answer all your questions
Our Experts can send you more appropriate options based on your personal circumstances

Very important if you are either Self-Employed or a Company Director.

Our online quote tool is good but our Experts are better

Oue Experts have access to far more insurers and can often find a better deal offline.

Saves you time, let our Experts do what they are best at

Answered by Tom Conner

Mortgage payment protection insurance (MPPI) plans tend to come with an initial unemployment exclusion period when this cover is first taken out.

Firstly, it is important to note that the exclusion period is different to the policy deferred period, which is the length of time you would need to be out of work before the plan starts to accumulate benefit.

What is the unemployment exclusion period?

To protect themselves from adverse selection, MPPI insurers tend to place an exclusion period on the ability to make a claim for unemployment/redundancy.

During the exclusion period it is not possible to make an unemployment claim if you are made redundant or informed of your potential redundancy (i.e. you are put ‘on risk’ or your company announces that members of your department are to be made redundant).

The exclusion period usually ranges from 90 days to 120 days, depending on the insurer, and only applies for this initial period after taking out cover.

Switching from another insurer?

If you already have cover and are simply reviewing your existing cover with the view to switching if a better deal is available many (but not all) insurers will waiver part or all of the initial unemployment exclusion period. Please contact us so a suitable plan with this feature can be arranged.

Taking out a new mortgage?

If you are looking to cover a new mortgage or re-mortgage then the risk of adverse selection for the insurer is much reduced and, as a result, some insurers will reduce the initial unemployment exclusion period to 30 or 60 days (provided that the cover start date falls within 30 days of your mortgage being taken out). Please contact us so a suitable plan with this feature can be arranged.

unemployment
 
payment protection
 
exclusion period
 
mortgage protection
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Compare Top 10 UK Insurers
  Takes approx. 60 seconds
 - 
Need help? 
Call us on 

Frequently Asked Mortgage Protection Insurance Questions

 
For mortgage protection do you need critical illness cover? Is it worth taking out this type...
 
I am looking for some insurance to protect my mortgage and have seen insurers offering mortgage protection...
 
I have recently taken out a new mortgage with my husband and have been looking into some insurance. I...
 
I’ve recently had a pulmonary embolism, is that be covered under my critical illness...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Andrew Giles
10/04/2018

From start to finish a very professional and courteous outfit. A very efficient company with a no nonsense approach. Would recommend.

Mark Burbidge
13/04/2018

First class service from start to finish. Sam Carr was very helpful in setting up my new insurance policies. He kept me up to date throughout the process and provided full explanation and advice on the products and was always available to help.

Doug Muirhead
10/04/2018

Excellent personal service from Matthew Giles, made sure we received a tailor made quote that ideally suited our requirements as a family.

We are rated 4.9/5 based on 1512 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
1547 Reviews
R Steer
Overall Rating
Josh, Nick & Sam helped me set up PHI & Life insurance when I set up my own company. The application process wasn't straight forward due to my medical history, but the team made everything as simple as possible.
C Ash
Overall Rating
I have not started my health cover yet, bus so far the introduction has been very efficient and speedy.
G White
Overall Rating
Clear and concise information
D Muirhead
Overall Rating
Excellent personal service from Matthew Giles, made sure we received a tailor made quote that ideally suited our requirements as a family
S Walker
Overall Rating
Great service, independent advice, not pushy and very consultative. I would have no hesitation in recommending.