What is a mortgage protection plan?
Mortgage protection is a dedicated type of life insurance. It helps secure the ownership of your home by helping to clear your outstanding mortgage if you die, or if selected, if you are diagnosed with a specified serious illness, within a specified term. It can help alleviate any financial burden that may fall on a family member. We have different types of mortgage protection.
How does mortgage protection work?
When you take out a mortgage, your provider will insist that you have enough cover in place. This is to protect you in the event of your untimely death or diagnosis of a specified serious illness, leading to an inability for you to pay the mortgage By paying a premium each month for a specified term, the policy will pay out a lump sum if the unexpected happens. The cover provided decreases over the term of the plan, broadly in line with the capital outstanding on your mortgage.
Who is mortgage protection for?
Anyone taking out a mortgage is required by their lender to have mortgage protection in place. Many people take up a policy with their mortgage provider, but it’s always a good idea to shop around. Not only does this allow you to see the best premium available to you, but it ensures that you get the most suitable product for your needs.
Mortgage protection benefits
There are many benefits to having mortgage protection cover in place. It protects your home by helping to clear your mortgage if you die, providing you with peace of mind. It also provides protection for your family, safeguarding them from a substantial financial burden. You can add cover for many serious illnesses and disabilities, and you have the option to increase cover on certain life events e.g. birth of a new child. You can also have a second life insured on your policy.