You've saved for your dream house and made a home where you and your family feel safe and secure. Life is full of unexpected curveballs so it's best to be prepared if something does happen by ensuring your family is able to afford the mortgage repayments or pay the mortgage off without you.
Recent research suggests one in four UK breadwinners don't have any form of life insurance to help care for their family. With this thought in mind, here is an overview of the benefits provided by mortgage protection life insurance and the peace of mind it could provide your family.
Mortgage protection life insurance is designed to pay off the mortgage on your home, meaning your loved ones won't have to cope with losing you and their home in quick succession.
Mortgage protection life insurance decreases over the term of your plan, broadly in line with the outstanding balance of your repayment mortgage so, for example, a second year payment would be higher than a payment in the twenty-fifth year. And because mortgage protection life insurance policies decrease over time, it's often cheaper than 'level term' life insurance which stays at the same level throughout the term of the policy.
Find out more about life insurance here.
Don't forget to check your policy when moving to a new place, making sure the mortgage protection insurance covers the full amount of any mortgage on your new property.
If your circumstances change, not all polices can be amended to provide less or more cover. However, if you have recently moved into a larger house after having children for example, many insurers will allow you to increase your level of protection subject to your health.
Many people buy mortgage protection life insurance at the same time as purchasing a new home, choosing cover from their bank or mortgage provider. Checking with other providers can often get you a better deal, so have a look and around and see what's on offer.
Find out more about shopping around for the best life insurance deals here.
Most providers can offer critical illness cover as an extra when buying mortgage protection life insurance. This type of cover is designed to provide a lump sum payout if you were to develop a serious condition such as cancer or a heart problem.
If you are unable to work and pay your bills - such as mortgage repayments - adding critical illness cover to your policy could prove invaluable. If you do take out critical illness cover and mortgage protection life insurance together, the policy may only pay out once, so it's best to check with your provider.
The amount you pay for mortgage protection life insurance is calculated using a range of factors, including how long you need the cover for (i.e. the length of your mortgage), age and also life expectancy.
To compare all your life insurance quotes quickly and easily, use our price comparison service. It's free, fast and allows you to instantly view and compare all your quotes in one straightforward search. Click here to compare quotes now.
Are you planning to move into a new home? If so, you may be wondering, what is mortgage protection insurance? Find out more in our guide.
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