Mortgage Protection Insurance

What is Mortgage Protection Insurance?

Mortgage Protection Insurance is a type of life assurance that specifically covers your mortgage. The policy will provide life cover for the same period as your repayment mortgage. However, to save costs, the amount payable on your death will reduce in line with your mortgage balance. This should mean that the premiums should be lower.

The idea of the mortgage protection insurance plan is to pay off your mortgage in the event of you (or your partner's) death. This therefore provides security for your family.

Mortgage protection is not suitable for an interest only mortgage, since there will never be any money invested to pay off the interest only mortgage. Since a mortgage protection insurance policy reduces in value over time, this also makes it unsuitable. A standard (level) life assurance policy should be used for this purpose.

Mortgage protection insurance can also be written in conjunction with critical illness cover on a decreasing basis.

The cost of a mortgage protection insurance policy will depend on your age, medical history, sex and the amount of cover.

For more information on a mortgage protection insurance plan, please contact us.