Mortgage Protection Insurance Quotes
by Admin
Posted on 05-10-2022 07:03 AM
What is mortgage repayment protection
insurance
?.
You are buying an investment property you are over 50 years old you cannot get this insurance, for example due to a current serious illness, health issue or dangerous occupation you have a life insurance policy in place already exemptions are made on a case by case basis and even if you fall within one of the above exemptions the lender may make it a condition of the mortgage that you have mortgage protection in place before they approve your mortgage. It is important to know the financial risk of having no cover in place before signing up to the mortgage. In the event of death, there will be no insurance policy to pay off the mortgage so the joint owner or your beneficiaries will have to continue repaying the mortgage.
Mortgage protection insurance is designed to pay off your mortgage if you die. Your policy runs for the same length of time as your mortgage, and the premium you pay each month depends on the size of your mortgage as well as your age, whether you are a smoker or non-smoker and the state of your health. As your level of cover is designed to decrease in line with your mortgage loan it is the most cost-effective type of life cover.
Mortgage lenders and insurance companies alike once offered a product called mortgage protection insurance. Though the actual features varied, most of these policies were a form of decreasing term insurance , intended to pay off the policyholder’s home mortgage if they were to pass away. The death benefit on this type of policy was paid out directly to the mortgage lender, bypassing the insured’s family altogether. This coverage also decreased over time in line with the mortgage loan’s amortization, even though premiums were level for the length of the policy. Today, providers offer term coverage designed to help family members cover the value of the mortgage with other financial needs upon the death of a loved one.
What is mortgage protection?
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.
At insure. Com, we are committed to providing honest and reliable information so that you can make the best financial decisions for you and your family. All of our content is written and reviewed by industry professionals and insurance experts. We maintain strict editorial independence from insurance companies to maintain our editorial integrity, so our recommendations are unbiased and are based on a comprehensive list of criteria. Taking out a mortgage is one of the biggest responsibilities that adults will face. Falling behind on your mortgage can lead to paying more interest charges, late fees, foreclosure proceedings and even losing your house.