Mortgage Life Insurance

What is mortgage life insurance?

Buying a home is usually the largest purchase we will make, and in most cases are bought using more than one person’s income. If anything was to happen to one of the people on the deeds, it could leave the others in financial problems. Mortgage life insurance is an insurance that covers the remaining balance of a mortgage if the named person on the policy dies.

What types of life insurance will cover a mortgage?

Decreasing life insurance

Mortgage life insurance cover is designed to pay off the remaining value of a property. The amount that is payable decreases each month in line with your mortgage payments. The term of the policy is for the lifetime of the mortgage, so once paid it is paid off, the policy ends.

Level Life insurance

Another form of life insurance to cover the mortgage if someone dies is a policy that doesn’t decrease the pay-out value over time. These can be for a set time where they would pay out; known as a term life insurance, and one that pays out when you die without a cut-off date; known as whole of life insurance. This pays out a previously agreed amount when you make a claim so can pay more than the value of the mortgage left over.

Critical illness cover

There are other concerns regarding health that may not result in death. A severe health diagnosis could prevent you from being able to work anymore. Life and critical illness insurance can cover you for death and also if you fall critically ill. Life and critical illness insurance will cover more ailments, but there is usually a list of specific illnesses that are covered depending on the policy. Speak to a life insurance advisor to make sure you get the policy right for you.

Who may require mortgage life insurance?

Life insurance to cover your mortgage is at the very least, peace of mind that you won’t leave your loved ones in financial trouble. It is not a legal requirement to have life insurance to get a mortgage, but some lenders will require it. A life insurance advisor will talk you through the different policies to make sure you have the right mortgage life insurance in place.

Couples

If you rely on two incomes to pay the mortgage, an unexpected and untimely death could throw your surviving partner into financial ruin. They may have to sell the house and move out. Mortgage life insurance can be a lifeline to ensure that the grieving process doesn’t also require huge financial troubles.

Parents

We would do anything for our kids; no matter what the legal and general life insurance regulations may be; you don’t want our family to struggle. Money won’t help with the loss of a loved one, but it will ensure they don’t lose their home.

How can A&M Partnership help with your mortgage life insurance mortgage advice needs?

With any major financial decisions, you should always seek professional advice. A&M Partnership are specialists in all things regarding mortgages and a mortgage life insurance cover can have a lot of insurers to choose from. Mortgage life insurance can have some eligibility concerns so the mortgage life insurance advice you get can save you money in the long run. There are several mortgage life insurance providers on the market and each one has differing criteria. Don’t delay; get in touch with our experts to get the right help to buy property advice today!

Disclaimer:
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayment on your mortgage.