Payment protection insurance will pay out a sum of money to help cover your monthly repayments, it covers your monthly mortgage repayments for a set period of time. The maximum number of monthly repayments that the insurance company will make is usually 12, but it can sometimes be 24.
The reason for the claim could be because you have an accident or sickness, or become unemployed through no fault of your own, or if you die.
This means that the insurance company will pay the monthly repayments (or a percentage of them) on your behalf for a fixed period of time if you make a claim. It is sometimes known as ASU (accident, sickness and unemployment) insurance.
MPPI is not the only product designed to protect against loss of income, and may not always be the most appropriate. Although this can provide worthwhile cover against unexpected changes in your personal circumstances, you should bear in mind its limitations and exclusions, and possible alternative/additional products (such as income protection).