Frequently Asked Questions about Mortgage Life Insurance

General Questions

• What is Mortgage Life Insurance?

  Hot Topics

  Is Mortgage Payment Protection Insurance the same as a Mortgage Insurance Guarantee?

  No. Mortgage Payment Protection Insurance is totally different to a Mortgage Insurance Guarantee.

  Will the Mortgage Payment Protection Insurance pay your interest and capital?

  You decide how much you want the insurance to pay out each month if you’re off work. So make sure your cover is sufficient to meet your full monthly repayment to your mortgage provider.

  You have an Interest Only Mortgage. What sort of Life Insurance do you need?

  You need normal, level cover, Life Insurance.

  How long should you insure for?

  For mortgage protection purposes you should also insure yourself for the same number of years that are remaining on your mortgage. The initial sum insured should always equal the capital sum outstanding on your mortgage.

  Should I include Terminal Illness Insurance?

  Terminal Illness Insurance is generally included at no extra cost on all Mortgage Life, Life and Critical Illness policies.

• What happens if you need cover quickly in order to complete a house purchase?
• Is there any investment value in your policy?
• Can you keep your Life policy on if you pay your mortgage off early?
• What is Mortgage Payment Protection Insurance?

Is it really Mortgage Life Insurance you need?

• You have a Repayment Mortgage. What sort of Life Insurance do you need?
• You have an Interest Only Mortgage. What sort of Life Insurance do you need?
• When would normal Life Insurance be used in connection with a mortgage?
• You want to ensure that your mortgage is paid off if you were to die or become very seriously ill and could not work again. What sort of life insurance do you need?
• You want to ensure that your monthly mortgage repayments are paid on your behalf if you were off work due to sickness, accident or unemployment. What sort of insurance do you need?

Aspects you have to make decisions about when buying Mortgage Life Insurance

• How much should you insure for?
• How long should you insure for?
• Should you have a “Guaranteed” or a “Reviewable” policy?
• Should you include Terminal Illness Insurance?
• Should you include Critical Illness Insurance on your policy?
• Which optional extras are important for Life Insurance?

Are there any problems if I buy Mortgage Life Insurance here online?

• Will your mortgage lender accept a Life Insurance policy bought online?
• Will you have to pay a fee to your mortgage lender if you don’t buy your Life Insurance through them?
• Do you have to buy your Life Insurance through your mortgage lender or mortgage broker?

Other

• Under a combined Life Insurance and Critical Illness policy, is the value of cover the same for both the life and critical illness provisions?