Mortgage life insurance covers the repayments of the loan on your home in the event of your death. If your mortgage repayments are dependent wholly or even partly on your income, you may want to consider the consequences if you were no longer around.
Not to be confused with:
- Whole of Life Insurance – rather than being an accumulative amount of money that you can lend against, mortgage life insurance only pays out in the event of death
- Term Life Insurance – while term insurance provides your beneficiaries with a lump sum of money, mortgage life insurance ensures that the lenders are compensated to the amount agreed on the policy
- Mortgage Payment Protection Insurance – this may be the most confusing because the terms are fairly similar but it is actually quite simple. Mortgage life insurance pays off your mortgage in the event of death. Mortgage payment protection pays out in the event of serious illness, injury or unemployment, or any other time where you are unable to make repayments
- You can rest assured that a massive monthly outgoing will not be the concern of those you have left behind – a great easing of the financial strain of your loss
- It will ensure that the property you have been paying for and, more importantly, calling home will stay in the hands of those you care about
- Policies are very versatile: for example, if there are two bread winners in the family, a couple can split mortgage life insurance
- You are covered by government-backed Financial Services Compensation Schemes if the insurance provider goes into administration
If any of these points are of concern to you and you are thinking about purchasing mortgage life insurance, please don’t hesitate to contact us for more information on your options.