Mortgage Protection
Mortgage protection insurance is designed to pay off your mortgage if you die and runs for the same length of time as your mortgage – so if you take out a mortgage over 30 years, your mortgage protection insurance will also run for 30 years.
How much does mortgage protection cost?
The premium you pay depends on a number of different factors including the size of your mortgage, the term of your mortgage, your age, your gender, whether you smoke and the state of your health. The premium you are charged remains the same for the duration of the policy.
Who needs to take out mortgage protection?
If you are under 50 and take out a mortgage your mortgage lender will require you to have an adequate mortgage protection policy in place. This is so that in the event of your premature death the family home does not have to be sold to clear the mortgage.
What benefit do you get?
If you die, your insurance company will pay the benefits from your policy directly to your mortgage lender to pay off your mortgage. Any surplus benefit will be paid to your estate.
The level of benefit on your mortgage protection insurance will decrease every month in line with your reducing mortgage balance, so generally there will be no surplus benefit to be paid to your estate after the mortgage is cleared.
Are you looking for a policy that pays a lump sum to your estate on your death? If so, talk to us about a ‘Level Term’ insurance policy.
Contact Us
Why not contact us for more information.
