Financial Services > Life lnsurance > Mortgage Protection > Mortgage Protection Insurance

Mortgage Protection Guide

Mortgage Protection

There are two ways to protect your mortgage:

1) Cover your mortgage for Life and/or Critical Illness Insurance

This type of insurance is designed to pay off your mortgage in the event of death or a critical illness. If your mortgage is in joint names it would be normal to take out a policy in joint names where the policy would pay out on the first death. The idea is that you do not leave your partner with a mortgage to pay in the event of death.

To obtain a quotation for cover you can either:

a) fill in a quick enquiry form and one of our recommended specialists will search the market to find the lowest quote.

b) you can do your own online quotation which will compare leading companies and then allow you to request or download an application if you would like to proceed.

c) you can call the life insurance helpline on 0845 108 0505 they will take your details and call you back with a quotation.

To obtain a quotation for cover you can either fill in a quick enquiry form and one of our recommended specialist will search the market to find the lowest quote or you can do your own online quotation which will compare leading companies and then allow you to request or download an application if you would like to proceed. Or you can call the life insurance helpline on 0845 108 0505 they will take your details and call you back with a quotation.

Tips

To have critical illness insurance it is more expensive so it is best to get two quotes, life cover with and without critical illness, so that you can see the two costs and make a decision on taking life insurance only or life insurance and critical illness.

If you have a repayment mortgage you would generally go for decreasing term insurance where the death benefit reduces along with the mortgage. Decreasing term insurance is cheaper than Level term insurance.

If you have an interest only mortgage you would need level term insurance, here the death benefit remains the same throughout the term of the mortgage.

If you are not sure what you need, best thing would be to phone the helpline who are friendly and available to assist you on 0845 108 0505

Life insurance premiums have reduced in recent years so it is always worth checking that you still have a competitive premium as changing your policy is relatively easy and could save you money. However never cancel an existing policy until your new replacement plan has started.

2) Mortgage protection in the event of accident sickness and redundancy

This is where you take out a plan to provide a monthly benefit sufficient to cover your mortgage and possibly additional bills if you are unable to work due to accident or sickness or you have been made redundant.

To obtain a quotation you just need to know the amount of cover required, i.e no personal details required at this stage, then if you wish to proceed you can buy this product online through our recommended provider. To get a quote click here ( this goes to income insurance - protectiononline)

Tips

Many lenders offer this type of plan but it can often be expensive, so always seek an alternative quotation, if you have existing cover it is also worth getting an alternative as you could save on the monthly premium.

If you are self employed, get a quote without redundancy insurance as you could be paying a premium for redundancy without being able to make a claim.

If you are not sure of exactly what you need phone the helpline on 0845 108 0505 who will be happy to organise for an adviser to contact you without obligation.