There is no such thing as a risk-free life. All kinds of problems can occur, however careful you are. That is why people take out insurance policies to cover themselves in the event of accidents or events, whether they are small mishaps or large-scale disasters. The right insurance cover will pay for anything from a small dent in your car to the complete rebuilding of your home if it is burnt down.

For most people, their home is their biggest asset. It usually takes a mortgage with a 25-year term to pay for it, with payments that are a large part of their monthly outgoings. Although banks and building societies are usually understanding if the occasional payment is missed, they will not be if you get into financial difficulties and miss several months in a row. They will foreclose on the loan and you will be evicted from your home.

There are various reasons why people find themselves in this kind of situation, but it is usually a matter of bad luck. Accidents, sickness and unemployment lead to a loss of regular income and a subsequent inability to pay the mortgage. Through no fault of their own, people who do not have enough savings to see them through such periods will often lose their homes.

There is some help available from the government for people who are unemployed. After thirteen weeks, you can claim benefits which will cover at least the interest payable on your mortgage. This is an invaluable lifeline for many, although in the current climate of austerity, with many cuts in various kinds of benefits being implemented, it might be wise not to rely too much on it.

Mortgage payment protection insurance (MPPI) is one option available for those who wish to have some cover against the possibility of losing their home. Most of these policies will offer to pay your mortgage for a set period if you are unable to through no fault of your own. The usual reasons for claiming are involuntary redundancy or illness or accidents that lead to loss of income.

Although MPPI is a good option for some, it is important to look carefully at the terms and conditions before taking out a policy. Some providers will set limits on the monthly payments, so if you have a very big mortgage you will not be fully covered and will have to pay the difference yourself. Most policies will also only pay out for one year.

As this kind of insurance is not cheap, it`s also important to consider whether you really need it. If you have sufficient savings to pay your mortgage for a year in the event of redundancy or illness, then it may not be worth taking out a MPPI policy. Anyone who has worked for one employer for many years will usually receive a large redundancy payment if laid off, which can be used to pay the mortgage until another job is found.

MPPI has had a bad press in recent years, with some policy holders finding that the providers are extremely reluctant to pay out when a claim is made. Despite this, there are insurance companies that do offer fair and reasonable terms. Some research is usually needed to decide if this kind of policy is appropriate for your circumstances, so whenever you are looking into mortgages or remortgages using a mortgage calculator, it is a good idea to investigate what sort of insurance protection you might need at the same time.