Mortgage Protection Insurance protects your family from the burden of financing your property should you pass away before you have repaid your mortgage. In return for a small monthly premium, your remaining mortgage will be repaid by the insurance company.
Mortgage protection insurance is usually a specific form of a term life insurance policy. The term of the policy normally coincides with the term of the mortgage and the pay-out with a pre-scheduled expected mortgage balance.
Tip: Although this type of insurance is often required by the mortgage lender before they will grant the mortgage, you are not obliged to take out your Mortgage protection insurance with your mortgage provider. It is often more efficient to search for an alternative insurer.
Mortgage protection only covers your mortgage. As your mortgage balance goes down, so does the amount payable by the insurer.
Tip: As an alternative, you may wish to consider the relative costs and benefits of a long term life insurance policy where the pay-out does not reduce with your mortgage. This way your family will receive additional amounts to cover other expected costs.
For a mortgage protection quotation, please click here.
Your home is at risk if you do not keep up with the payments on your mortgage or other loans secured on it.
