About Life Insurance Cover

Mortgage life insurance gives you and your family financial and peace of mind

In the event of the mortgage holder passing away, the outstanding mortgage will be paid off.

When you get the keys to your new home nobody is thinking of what would take place to their home if the worse were to happen and they were to die prior to the mortgage been paid off.

Given the amount of money that is borrowed under a mortgage, failure to consider what would happen in this scenario could have ramifications for your household or partner. This might eventually lead to the repossession of the property if your loved ones were not in a position to make the mortgage repayments without you.

Mortgage life insurance – also called “mortgage life assurance”

Mortgage Life Insurance cover, also known as ‘Mortgage Life Assurance,’ is essentially a form of life insurance created to secure your mortgage and property. Basically it means that, in case of the mortgage-holder passing away, the insurance plan would pay enough capital to cover the rest of the outstanding mortgage and, depending on the policy, also some money to assist with various other expenses. This piece of mind can be tailored to your situation around 3 major types: ‘Decreasing Term;’ ‘Level Term;’ and ‘Whole of Life Cover’.

The kinds of mortgage life insurance

‘Decreasing Term’ means that due to the fact that your mortgage decreases as you make your monthly repayments so too does the amount that would be paid out in the outcome of a claim. It links the amount that your mortgage is insured for with the amount that is actually left to repay meaning that your monthly payment remains exactly the same. This allows you to budget for your insurance payments; it is appropriate for those who are paying both the capital and interest off the mortgage because it is relative to the actual capital remaining.

‘Level Term’ also provides you with a fixed month-to-month payment that allows you to handle your financial resources easily. Although generally more costly due to the fact that the sum that is insured stays the same despite the amount of the mortgage you pay back, this kind of ‘Mortgage Life Insurance’ has the benefit of building a surplus of capital. This offers additional money, not tied into mortgage repayments, should a claim be made on the policy.

‘Whole of Life Cover’ can be linked to various other financial investments, such as pensions, and indicates that the policy could be taken out as a lump sum should you pass away.

In addition to the versatility of the 3 forms of Mortgage Life Insurance there are other aspects that can be included which makes it the ideal kind of insurance cover for homeowners who want protection customized to their specific needs. Premiums are determined on an individual basis meaning that you can be assured that you are paying a fair price for your piece of mind. Optional extras also include the possibility of putting a ‘waiver’ onto your premium meaning that if you were incapable to work, for example because of illness, accident or unemployment, you might suspend your monthly Mortgage Life Insurance. The versatility, benefits and ease of Mortgage Life Insurance indicates that they are a safe methods of protecting your house.

If you would like a free initial consultation  about the various mortgage protection and / or life insurance choices offered please contact us – we will be pleased to discuss things in a clear, impartial and helpful way.

There are many other providers of Payment Protection Insurance [Short-Term Income Protection] and other products developed to protect you against loss of income. This will typically cost ₤3 per month for each ₤100 of benefit.

For info about insurance, please visit the website at www.moneymadeclear.org.uk

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