Mortgage payment protection insurance (MPPI) covers your monthly mortgage payments for a limited time, usually 12 to 24 months, if you can’t work because of an accident, illness or, on some policies, redundancy. Income protection is different: it pays a share of your income for any illness or injury that stops you working, and can keep paying until you return to work or retire. MPPI is a short-term safety net; income protection is longer-term cover for your whole household budget.
This guide explains how each works, the benefits and drawbacks, and how to decide which suits you.
How does mortgage payment protection work?
You choose a monthly benefit, usually set to cover your mortgage payment and sometimes a little more for related bills. If you can’t work, the policy pays that amount each month after a waiting period, for up to the maximum benefit period, typically 12 or 24 months.
There are usually three versions:
- Accident and sickness cover, which pays if you’re too ill or injured to work.
- Unemployment cover, which pays if you’re made redundant.
- Accident, sickness and unemployment cover, which combines both.
Most policies have an initial exclusion period when you first take them out, often between 30 and 180 days, during which you can’t claim. This is to stop people buying cover when they already know redundancy is coming.
How does income protection work?
Income protection pays you a monthly income, usually a percentage of your gross earnings, if illness or injury stops you working. You choose a deferred period, the time you need to be off work before payments start, often 4, 8, 13, 26 or 52 weeks, to line up with your sick pay and savings. Depending on the policy, payments can continue until you return to work, the policy ends or you retire.
Insurers paid a record £209 million in individual income protection claims in 2025, with an average claim of £10,700, according to the Association of British Insurers. Income protection doesn’t usually cover redundancy.
Mortgage payment protection vs income protection at a glance
| Mortgage payment protection | Income protection | |
|---|---|---|
| What it pays | Your mortgage payment | A share of your income |
| How long it pays | Usually 12 to 24 months a claim | Until you return to work, the policy ends or you retire (on full-term policies) |
| Covers redundancy? | On some policies | Usually not |
| Covers illness and injury? | Yes, on accident and sickness policies | Yes |
| Typical cost | Lower | Higher, but much broader cover |
What help would I get from the state?
Less than most people expect. From April 2026, statutory sick pay is £123.25 a week, or 80% of your average weekly earnings if that’s lower, for up to 28 weeks. In Northern Ireland, Support for Mortgage Interest is now a loan rather than a benefit: it helps with mortgage interest only, it’s only available if you’re on certain benefits and after a qualifying period of three months, and it has to be repaid with interest, usually when you sell your home.
Which should I choose?
- Income protection usually gives the most complete cover against illness and injury, because it keeps paying for as long as you can’t work and covers all your bills, not just the mortgage.
- Mortgage payment protection can suit you if your main worry is redundancy, or if you want lower-cost cover for the mortgage while you’re building up savings.
- Self-employed? MPPI unemployment cover is often limited for the self-employed, so income protection is usually the stronger option.
- Some people have both: income protection for illness, and short-term unemployment cover for redundancy.
The right answer depends on your job, your sick pay, your savings and your budget, which is what we look at with you.
Questions people ask
Is mortgage payment protection the same as PPI?
No. Mortgage payment protection is a separate type of insurance, bought on its own to cover your mortgage payments. The PPI mis-selling problems mostly involved cover sold alongside loans and credit cards, often to people who couldn’t claim on it.
Do I need mortgage payment protection to get a mortgage?
No. Lenders don’t require it. It’s your choice, and you can buy it from any insurer, not just your lender.
How much does it cost?
It depends on the monthly benefit, the type of cover, the waiting period, your age and your job. A longer waiting period usually makes cover cheaper.
Will it pay out if I already have a health condition?
Many policies exclude claims for conditions you had before you took out the cover, at least for a set period. Check the exclusions before you buy.
What about mortgage protection life insurance?
That’s different again. Mortgage protection life insurance clears your mortgage if you die. Read our guide to mortgage protection.
What our clients say
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How McDowell can help
We’re a Northern Ireland based mortgage and protection adviser with over 30 years’ experience. We’ll look at what your employer already provides and what savings you have, then find cover that fills the gap, whether that’s income protection, short-term cover or a mix. Find out more on our income protection page, or book a free call below.
Cover is subject to the insurer’s acceptance, terms and exclusions. Your home may be repossessed if you do not keep up repayments on your mortgage.
This article is general information only and isn't personal advice. Mortgage and protection products depend on your circumstances, so please speak to one of our advisers before making a decision.
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