Mortgage payment protection insurance (MPPI) is constantly criticised for its failings in comparison to income protection (IP). But what advantages does the product have and in what instance is it a more suitable product than IP?
Market views Ronnie Martin, Adalta Consulting The life protection sector seeks to compare MPPI products with IP. However, such comparisons are not valid and could be damaging since the underlying products are structured very differently. MPPI is for the mass market while IP is a fully underwritten prestige market product. How IP can become a mass market proposition, i.e. one that retains its prestige product status while having wider market appeal - is the subject of constant debate. In the meantime, MPPI is sold because it is generally lower in cost for customers while distributors f...
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