IF THE looming spectre of rising unemployment is weighing heavily on your mind, and you're worried about how you'll meet your mortgage repayments if you end up on the firing line, a form of insurance known as mortgage payment protection will seem very tempting. But do you really need it?

Not to be confused with mortgage protection, which is a compulsory life assurance policy that will clear your home loan in the event of your death, mortgage payment protection insurance is an added extra. The idea is that it will cover your mortgage repayments, usually for 12 months, in the event of an accident, illness or involuntary unemployment.

This will no doubt give you peace if you're concerned about your job security, but it's important to do your research before signing up for this extra expense or it may not turn out to be safety net you hoped for. "The disadvantage is that they have the tendency to have small print that excludes a lot of people," says John Geraghty of LA Brokers.

"So people are lulled into a false sense of security, of believing that they actually have cover if they're made redundant, and when they actually look into the fine print of the policy, they discover that they're not strictly covered.

"I think the vast majority of people who bought the product would believe that it offers them greater cover than they actually enjoy," he continues. "So it's something to beware of."

Geraghty advises people to go through the policy terms and conditions with a fine-tooth comb, paying particular attention to exclusions, before signing on the dotted line.

Don't look for what it covers . . . look for what it doesn't cover, he says. "Then you'll be able to identify whether it's actually offering you good value for money, because it is expensive.

If you're reviewing your finances in light of the current downturn, and already have a mortgage payment protection policy, he recommends that you request a copy of the policy terms and conditions from your provider to find out what exactly you're covered for, and more importantly what you're not covered for.

This should help you to figure out whether you're getting value for money, and whether you might be better off diverting the money towards something else, such as clearing off your mortgage.