What Does It Protect Against?
In the case of the mortgage holder passing away, the insurance plan could pay enough capital to cover the rest of the outstanding mortgage and depending on the policy also some money to assist with various other expenses.
A ‘Decreasing Term’ policy means that due to the fact that your mortgage decreases as you make your monthly repayments so too does the amount that would be paid out in the outcome of a claim.
A ‘Level Term’ policy also provides you with a fixed month-to-month payment that allows you to handle your financial resources easily. Although generally more costly due to the fact that the sum that is insured stays the same despite the amount of the mortgage you pay back.
‘Whole of Life Cover’ can be linked to various other financial investments, such as pensions, and indicates that the policy could be taken out as a lump sum should you pass away.
Optional extras also include the possibility of putting a ‘waiver’ onto your premium meaning that if you were incapable to work, for example because of illness, accident or unemployment, you might suspend your monthly Mortgage Life Insurance.
Further Information
If you would like a no obligation initial consultation about the various mortgage protection and life insurance choices offered, please contact The Mortgage Hut – we will be pleased to discuss things in a clear, impartial and helpful way.