Do I need mortgage insurance? Mortgage insurance exclusions

Check your insurance documents carefully for any policy exclusions

Mortgage protection policies have a range of exclusions, so you should examine these carefully before taking one out. 

Most policies don’t let you claim if you become unemployed during a certain period after first taking out the policy - the ‘initial exclusion’ period. This could range from 30 to 180 days and is in addition to the waiting and qualification periods. Some policies also have initial exclusion periods for accident and sickness claims.

You cannot claim if you are off work because of a pre-existing medical condition if this occurs within a specific period after you take the mortgage insurance policy out - usually 12 or 24 months. 

A pre-existing condition is defined as something you are suffering from at the start of the policy, or have seen a doctor about during a period before the start of the policy - usually 12 months. It is called 'previous illness period' in our table.

Stress and back problems

To claim for psychological conditions such as stress or depression, or any back-related conditions, you will usually need to provide some kind of medical evidence, depending on the provider. Other medical exclusions and conditions will also apply so check them carefully.