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Mortgage Payment Protection Insurance (MPPI)
&
Accident, Sickness and Unemployment (ASU)
Becoming unemployed or being unable to work due to sickness or accident whilst having a mortgage to pay is one of the main reasons people fall behind with their mortgage payments and accrue mortgage arrears. To help prevent against this there are a number of insurance products available to substitute income - one of the most popular for homeowners is mortgage payment protection insurance.
Mortgage payment protection insurance is intended to protect your mortgage payments and help prevent mortgage arrears in the event of accident, sickness and unemployment.
It is intended to cover only mortgage and mortgage related premiums such as building and contents cover which is where it differs slightly from accident, sickness and unemployment (ASU) insurance although they are very similar and often confused.
How much will mortgage payment protection insurance cover?
Mortgage payment protection insurance will cover the whole cost of your mortgage payments and other related insurance such as buildings and contents insurance.
The cost of the cover will obviously be determined by how much insurance you need - what we mean by that is how much your mortgage payments are 
and how much your related insurances cost and how long the deferment period is. The deferment period is the time allowed from you being unable to work to the policy paying out - the longer the deferment period the lower the monthly premiums. Deferment periods usually range from 30 to 90 days.
Accident Sickness and Unemployment (ASU)
ASU is very similar to mortgage payment protection insurance (MPPI) and many people refer to them as one in the same. There is a slight difference though in the fact that a MPPI will typically cover only mortgage and mortgage related insurances and will not make allowances for other living expenses. ASU will cover your earnings and not your mortgage payments - allowing upto 65 or 70% of your regular monthly income to be subsidised should you be unable to work due to accident, sickness or unemployment.
This obviously means that ASU will typically pay out more than a MPPI policy thus allowing not only for mortgage and your mortgage related insurances to be paid but should also enable you to maintain a reasonable standard of living - paying other bills and buying food etc. So whilst the two policies are very similar there is a slight difference and depending on how much protection you require MPPI or ASU offer two comprehensive policies.
As with MPI, ASU premiums will be determined by the monetary monthly cover you require and by the deferment period. Both policies will typically run for 12 months or until you return back to work whichever is sooner.
The peace of mind to be gained by having suitable insurance in place will only ever become truly apparent if the insurance needs to be claimed on and bearing in mind borrowers with mortgage arrears are on the increase, in our opinion every homeowner should protect their investment with at least mortgage payment protection insurance or accident, sickness and unemployment.
