Mortgage Protection Life Insurance

Understanding the Use of Mortgage Protection Life Insurance

Mortgage protection life insurance is a way of protecting your home from being seized by financial institutions in the event that something disrupts the finances that you are dependent on.

Even if you’re just 18 years old and you feel responsibility towards helping safeguard your home, you can apply for mortgage protection.

Age requirement & coverage

As we’ve mentioned earlier, you can apply for this type of insurance even if you’re just 18. If you’re currently employed and are carefully making sure that your monthly mortgage payments are kept, you may choose from the following coverage types:

Unemployment, accident & sickness
Unemployment only
Accident & sickness only

Different types of coverage offer different monthly premiums. The widest net, unemployment, accident & sickness often have the highest monthly premium. Nevertheless, you would have the luxury of sleeping soundly at night, knowing that you won’t lose your home in the event that something that drastic happens.

Do you need mortgage protection life insurance?

Everyone needs financial assurance; but people have individual risks associated with their health and occupation. You might need mortgage protection if you’re experiencing one or more of the following situations:

You have a terminal illness that might take away your life within less than a year.

There’s a high probability that you might die within the year, due to varying circumstances (sickness, accidents, etc.).

You have a critical illness that may or may not shorten your lifespan within a specific period of time.

Owing to the circumstances of your occupation, there’s a risk that you might get sick or have an accident, leading to at least partial or temporary stoppage to your monthly income.

You have invested a lot of money in your house but you’re worrying that something might happen that might compromise the structural integrity of the building.

Different insurance policies satisfy specific needs of policyholders. Make sure that you’ve read every bit of information that an insurance broker has to offer before you sign on the dotted line.

Types of mortgage protection life insurance

Remember, you can ask for the insurance company for either full repayment of your mortgage or repayment of the mortgage’s interest. Often, the interest is what prolongs a mortgage’s duration.

Here are some of the types of mortgage protection policies available for residents of the United Kingdom.

Mortgage life insurance with terminal illness coverage

Comprehensive critical illness coverage (as part of the mortgage life insurance policy)

Mortgage payment protection insurance

Home & contents insurance