what does mortgage insurance really mean? from what I've seen, is seems to come down to life insurance. Am i right?

No you are not quite right. There ar 3 types of insurance that are used to "protect a mortgage". The first and most widely used is, as you say, life insurance. This will totally repay your mortgage if you die or are diagnosed with a terminal illness from which you are expeceted to die within 12 months.

Then there is critical illness insurance. This also pays out a lump sum which you can use to repay your mortgage if you are diagnosed with one of the many serious illnesses specified on the policy. The illness list does vary between insurance companies so take professional advice. Most policies cover heart attack, stroke, and most cancers plus many more illnesses.

Finally there is mortgage payment insurance. This type of insurance pays you a monthly income from which you can maintain your mortgage repayments if you are out of work through sickness, accident or redundancy. Again there are numerous types of mortgage payment policy so you are best to take advice. But do not buy it from your mortgage provider - they will charge you the earth! Go online - even better, ask for a quote through this web site and a specialist will phone you back!

Broker Boy