Although a third of homeowners have some kind of mortgage protection in place, most of them have simple mortgage payment protection insurance (MPPI), which often only covers mortgage payments over the short term, says a survey from LV=.
Less than one in ten homeowners have more comprehensive income protection insurance that could cover their mortgage and other living expenses over the long term, not just for a limited period.
Chris McFarlane of LV says, "We need a sea change in the way we view threats to our homes. We install locks and alarms because we fear burglary and we have buildings insurance to protect the property structure. But typically we don't protect the regular income that we need to be able to maintain over the long term to pay for our homes and other living costs. Proper income protection can cost as little as 50p a day."
Income protection insurance: News update: 20/08/2009