Frequently Asked Questions about Mortgage Life Insurance

General Questions

• What is Mortgage Life Insurance?

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  Are There Any Situations That Would Result In My Claim Being Refused?

  Yes there are the usual exclusions. These are summarised below but you should carefully read the paperwork that comes with your insurance documents.

  What is Mortgage Payment Protection Insurance?

  Mortgage Payment Protection Insurance pays your monthly mortgage repayment if you were off work due to sickness, accident, or unemployment. (Don’t forget that your home is at risk if you fail to keep up the repayment of loans secured against it.)

  When would normal Life Insurance be used in connection with a mortgage?

  Term Insurance is another name for Life Insurance. Normal Life Insurance is used if you have an interest only mortgage.

  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?

  You need Mortgage Payment Protection Insurance. This type of insurance is also know as Accident, Sickness and unemployment (ASU) Insurance.

• 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?