What are the most common optional extras you can have with a Mortgage Life Insurance policy?

There are two - Critical Illness Cover and Waiver of Premium are both worth thinking about.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

Hot Topics

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.
Can you keep your Life policy on if you pay your mortgage off early?
As far as the insurance company is concerned, until your policy reaches the end of its term and you continue to pay the premiums, you remain insured.
You have a Repayment Mortgage. What sort of Life Insurance do you need?
You need Mortgage Life Insurance. Mortgage Life Insurance makes sure that the capital outstanding on your repayment mortgage would be repaid if you died.
You have an Interest Only Mortgage. What sort of Life Insurance do you need?
You need normal, level cover, Life Insurance.
How Much Should You Insure For?
For mortgage protection purposes the initial sum insured must always equal the capital sum outstanding on your mortgage. You should also insure yourself for the same number of years that are remaining on your mortgage.
1. Critical Illness cover
If you take out Critical Illness Insurance, then you will receive a tax-free lump sum if you are diagnosed with one of the many serious illnesses listed in your policy. Each Insurance Company has its own list of critical illnesses, but you’ll find a typical list within the related questions shown below.

You’ll also find that it is far more economical to include Critical Illness in a Life Insurance policy than to have two separate policies.

2. Waiver of Premium
Another add-on that’s well worth considering is Waiver of Premium. This is an extra which ensures that the Insurance Company pays your insurance policy’s monthly premium if you were off work as a result of illness or unemployment. This isn’t expensive, and would allow you to keep the policy in what otherwise could be difficult circumstances.

Indexation
In the context of protecting your mortgage, you should not bother with Indexation. This is because the capital you owe your mortgage lender is unaffected by inflation and therefore you do not need to inflation proof it.

Frequently Asked Questions related to the above topic.
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