Mortgage Protection Insurance24th of July, 2021
What is Mortgage Protection Insurance?
Mortgage protection insurance is a type of life insurance.
If you become ill or die during the policy term, it pays off the rest of your mortgage. This means your family would be able keep their home and have one less thing to worry about.
Mortgage protection is also known as decreasing term life insurance or decreasing life cover.
Do you need Mortgage Protection Insurance?
Buying a house is one of the biggest financial decisions you’ll make. When thinking about taking out mortgage protection consider:
- Your family and what would happen to your home if something bad happened to you. With insurance, they could pay off the rest of the mortgage and keep the house
- Should you become ill and not be able to work, would you struggle to pay off your mortgage repayments?
How does Mortgage Protection Insurance work?
Once you have taken out a mortgage protection policy:
- You’ll pay fixed premiums for a fixed period
- As you pay off your mortgage, the amount of insurance cover you have decreases
- If you become terminally ill or die during the policy term, the rest of your mortgage gets paid off