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Types of Life Insurance: Mortgage Life Insurance
Mortgage Life Insurance, which is also sometimes called a mortgage protection policy, or mortgage payment insurance, covers the total sum of your mortgage and makes sure that it can be paid off straight away if you die. This means that your dependants will not be in danger of losing their home, or be loaded with the burden of costly mortgage payments. In order to help you avoid these risks; most mortgage lenders require you to take out either a Life Insurance or Mortgage Life Insurance policy at the same time as their mortgage loan.
Mortgage Life Insurance can also provide cover for illness, redundancy and accidents. Your policy will cover you for any monthly payments you cannot meet if you are unable to work due to illness, or injury. The type of mortgage you have will determine the type of coverage you will need. We can help you decide whether you need a 'level policy' or 'decreasing policy'.
However, you need to make sure that your insurance policy has the same term as your mortgage and that the maximum mortgage interest rate is covered under the policy and you do not need to inflation-link it. As you are using the policy to cover a mortgage, indexing it will sustain the value of the policy in real terms.
It is vital that you choose the right policy for you because there are a variety of different kinds of mortgage life insurance that protect in circumstances, such as disability, unemployment, loss of self-employed income, death - and the list goes on. We can find the best policy that suits your needs by sifting through the technical jargon, comparing prices and policies offered by the list of leading insurers that we work with.
