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Mortgage Protection Life Insurance

Mortgage Protection Insurance - what is it and what does it do?

Mortgage Protection is a life insurance policy that is designed to repay the amount outstanding on a repayment mortgage in the event of the policyholder dying during the term of the policy.   The actual amount paid out in the event of a claim reduces each year in line with the outstanding balance of the repayment mortgage, this assumes that the mortgage is paid to date with no arrears.  

Mortgage Protection Life Insurance is only suitable for a standard repayment mortgage otherwise known as a capital and interest mortgage.  If for example you have an interest only mortgage and the debt is not reducing then a Level Term policy might be more appropriate as the death benefit remains the same throughout the life of the policy.

Critical illness cover can be added to the policy, this would produce an income in the event of certain serious illnesses being diagnosed.  The insured would not have to die for a claim to be made.

Mortgage Protection Life insurance - how it works

If you choose a Mortgage Protection Life Insurance policy your dependants will receive a lump sum if you die during the period covered by the policy.  The lump sum is tax free and the money from your life insurance payout can be used for whatever purpose your dependants require unless you have assigned the policy to your lender in which case it will be used to repay your mortgage.  When getting a quote you should make sure the Mortgage Interest Rate selected or offered by the policy is sufficient to cover future movements in interest rates.  Premiums can be paid monthly or annually by direct debit from your bank account.

Why buy life insurance?

When someone dies they leave behind them not only a grieving family but a dependant family.  Just because a person dies it does not mean everything else stops at the same time.  It is devastating enough for the family to lose a loved one but then to have to suffer the indignity of not being able to pay the mortgage or feed and clothe the family properly is beyond comprehension. 

How much life insurance cover should I have?

Click here for some guidelines.

Consult a financial adviser if you are not confident about your calculation or decision.

How much does Mortgage Protection Life Insurance cost?

The premium will depend on a number of factors, including how much cover you need and the term of the policy, your age, sex  and your health.  Get an instant quote now and get an idea of your premium, you will probably be surprised how little it costs.

Why buy through Moneyworld?

A very simple answer!  You get the same high quality product from the UK's leading Insurance Companies for less than any other supplier.  Please discover this for yourself, get as many quotes as you like then return to us and save yourself some money.

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