Mortgage Payment Protection Insurance Glossary

All the common terms concerned with Mortgage Payment Protection

• ASU
• Benefit
• Claim
• Cover
• Deferment Period
• Eligibility
• Excess Period
• Exclusions
• Incapacity
• Insurer
• Key Facts
• Life assured
• Mortgage Payment Protection Insurance
• MPPI
• Payment Term
• Policyholder
• Policy Document
• Premium
• Provider
• Sum assured
• Underwriting
• Waiting period

ASU

Accident Sickness and Unemployment. See also Mortgage Payment Protection Insurance. Top of Page.

Benefit

The amount that will be paid out by a policy. Also called Cover or Sum Assured. Top of Page.

Claim

A request for payment of the benefit when accident, sickness or unemployment prevents the policyholder from working. Top of Page.

Cover

See Benefit. Top of Page.

Deferment Period

The time between the start of incapacity and commencement of payment of the benefit. Also called the Waiting Period or Excess Period. Top of Page.

Eligibility

Criteria set out by the insurer that an individual must meet to be allowed to commence a policy. Top of Page.

Excess Period

See Deferment Period. Top of Page.

Exclusions

Situations in which a claim will be refused. Top of Page.

Incapacity

Inability work due to accident or sickness. Top of Page.

Insurer

The insurance company providing the policy. Top of Page.

Key Facts

A document which outlines the important features of a policy. Top of Page.

Life assured

See Policyholder. Top of Page.

Mortgage Payment Protection Insurance

The technical name for a policy which provides insurance against accident, sickness or unemployment. Top of Page.

MPPI

Mortgage Payment Protection Insurance. Top of Page.

Payment Term

The length of time a policy will pay out for, normally the sooner of return to work, death or reaching the maximum payout term. Top of Page.

Policyholder

An individual taking out insurance. Top of Page.

Policy Document

The document which sets out the terms of the contract of insurance and defines the terms and conditions of the policy. Top of Page.

Premium

The monthly amount a policyholder pays for the insurance. Top of Page.

Provider

See Insurer. Top of Page.

Sum assured

See Benefit. Top of Page.

Underwriting

Assessment of the risk by the insurer. Top of Page.

Waiting period

See Deferment Period. Top of Page.

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