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.

With a repayment mortgage, the amount of cover you need decreases as your mortgage repayments reduce the sum outstanding to your mortgage lender. Therefore, your insurance policy needs to reduce the insurance cover in line with the sum outstanding to you mortgage lender. This is exactly what Mortgage Life Insurance does.

Most Mortgage Life policies include Terminal Illness cover at no extra charge. This means that your Mortgage Life Insurance policy will pay out if you become terminally ill and are not expected to survive more than 12 months. If there is a claim the insurance company pays the money as per your instructions - normally directly to your next of kin or direct to your mortgage lender. This makes sure that the money is there to pay off your mortgage at a most difficult time for you and the family.

If your mortgage is in joint names you should have a Joint policy (most all mortgage providers will insist on this).

For mortgage purposes, the Joint policies we sell are always written on first life. This means that the policy will pay out if either of you were to die or become terminally ill during the policy’s term. (Please note that once a Joint policy has paid out on a first death, the policy is finished – it will not pay out again if the second person were to die.)

Please note that Mortgage Life Insurance policies do not have any investment value. Once the policy comes to the end of its term, that’s it. The policy is terminated.

IMPORTANT:
If you need insurance cover to pay your monthly mortgage payments if you were off work through sickness, accident or unemployment, then you should have Mortgage Payment Protection Insurance.

If you need insurance that repays your outstanding mortgage capital if you became critically ill (as opposed to dieing), you need Critical Illness Insurance.

Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -

• How much should you insure for?
• How long should you insure for?
• What is the difference between Critical Illness Insurance and Terminal Illness Insurance?
• Should you have a “Guaranteed” or a “Reviewable” policy?
• Should you include Critical Illness Insurance on your policy?
• What are the most common optional extras you can have with a Mortgage Life Insurance policy?
• If your insurer asks for a higher premium because you are Rated, is it worth applying to another insurance company?
• What is Mortgage Payment Protection Insurance?
• Should I insure for accident and sickness ?
• 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?
• Go to menu of Frequently asked Questions about Mortgage Life Insurance
• Go to menu of Frequently asked Questions about Critical Illness Insurance

-- Please Note --
This web site is owned by Andromeda Webs Ltd. Andromeda Webs Ltd, is an Appointed Representative of Web Publishing House Ltd. Web Publishing House Ltd is authorised and regulated by the Financial Services Authority for insurance mediation.