Frequently Asked Questions about Mortgage Life Insurance

General Questions

• What is Mortgage Life Insurance?

• Hot Topics

  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.)

  Why should you have Mortgage Payment Protection Insurance?

  Your home is at risk if you fail to keep up the repayment of loans secured against it.

  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 Mortgage Payment Protection Insurance pay out immediately you make a claim?

  As long as you are off work for 30 days - you can then make your claim.

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

  You need normal, level cover, Life 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?