What is Accident Sickness and Unemployment Mortgage Payment Protection Insurance (ASU MPPI)?
Accident Sickness and Unemployment Insurance or Mortgage Payment Protection Insurance, which in two words are the same thing, is designed to allow you to make your mortgage payments in the event that you can’t work due to an accident, sickness, or unemployment. You would normally pay a monthly premium to the insurance company, although it is possible to pay a single premium for a number of years, but generally, I’d advise against that. That monthly premium will then provide you with cover, typically for up to a year, in the event that you can’t work for any of the insured reasons. In most cases, you won’t receive any payment from the insurance company for the first month, and in some cases, for the first two months. Then, they will make payments (usually for a year, sometimes for two years) which are designed to help you to make the mortgage payments; indeed, you can insure for a little more than the mortgage payments to cover other payments, such as burial insurance and life insurance
