Frequently Asked Questions about Mortgage Life Insurance

General Questions

• What is Mortgage Life Insurance?

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  For how long will the policy continue to pay your mortgage?

  The Mortgage Payment Protection Insurance will pay your mortgage for up to 12 months or up to when you return to work, whichever is the sooner.

  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 mortgage is paid off if you were to die or become seriously ill and could not work again. What sort of life insurance do you need?

  You need either Life Insurance if you have an interest only mortgage, or Mortgage Life Insurance if you have a repayment mortgage. Then you need to add Critical Illness Insurance. You can do this all in one policy.

  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.

  Will you have to pay a fee to your mortgage lender if you don’t buy your Life Insurance through them?

  No! By law mortgage lenders are not allowed to charge a fee if you choose to shop elsewhere.

• 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?