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Mortgage Protection Insurance - what is it and what does it do?
Mortgage Protection is a life
insurance policy that is designed to repay the amount outstanding on a
repayment mortgage in the event of the policyholder dying during the
term of the policy. The actual amount paid out in the event
of a claim reduces each year in line with the outstanding balance of the
repayment mortgage, this assumes that the mortgage is paid to date with
no arrears.
Mortgage Protection Life Insurance
is only suitable for a standard repayment mortgage otherwise known as a
capital and interest mortgage. If for example you have an interest
only mortgage and the debt is not reducing then a
Level Term policy might be
more appropriate as the death benefit remains the same throughout the
life of the policy.
Critical illness cover can be
added to the policy, this would produce an income in the event of
certain serious illnesses being diagnosed. The insured would not
have to die for a claim to be made.
Mortgage Protection Life insurance - how it works
If you choose a Mortgage
Protection Life Insurance policy your
dependants will receive a lump sum
if you die during the period covered by the policy. The lump sum
is tax free and the money from your life
insurance payout can be used for whatever purpose your dependants
require unless you have assigned the policy to your lender in which case
it will be used to repay your mortgage. When getting a quote you
should make sure the Mortgage Interest Rate selected or offered by the
policy is sufficient to cover future movements in interest rates. Premiums can be paid monthly or annually by direct debit
from your bank account.
Why buy life insurance?
When someone dies they leave behind them not only
a grieving family but a dependant family. Just because a person
dies it does not mean everything else stops at the same time. It
is devastating enough for the family to lose a loved one but then to
have to suffer the indignity of not being able to pay the mortgage or
feed and clothe the family properly is beyond comprehension.
How much life insurance cover should I
have?
Click here for some
guidelines.
Consult a financial adviser if you are not confident about your
calculation or decision.
How much does Mortgage
Protection Life Insurance cost?
The premium will depend on a number of factors, including how
much cover you need and the term of the policy, your age, sex and
your health. Get an
instant quote now and get an idea of your
premium, you will probably be surprised how little it costs.
Why buy
through Moneyworld?
A very simple answer!
You get the same high quality product from the UK's leading Insurance
Companies for less than any other supplier. Please discover this for yourself, get as many
quotes as you like then return to us and save yourself some money.
Need help?
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Telephone
us FREE OF CHARGE on 0800 118 5115
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Get
an instant Life Insurance quote now.
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