A Mortgage Protection policy is a policy which is designed to pay off the remaining balance of your Mortgage in the event of your premature death or your partners premature death. So, in other words it’s a reducing Life Policy. It does not pay your monthly Mortgage repayments in the event of not being able to work.
This is a compulsory policy to have when getting the Mortgage. The Mortgage Lender will ask you to assign the policy to them, by completing a legal form called a Deed of Assignment. This means that in the event of a claim, the insurance company will make the death claim payable directly to the Lender and the Lender will use this money to pay off the remaining balance of the Mortgage.
It is your responsibility to ensure that there is sufficient cover in place for the full duration of the Mortgage. The insurance company does not know if you have stopped paying your Mortgage or restructured it.
We will give you the best price available on the market for this type of cover. In the unlikely event, you get a better price elsewhere, we will match that price on a like for like basis.
Life Cover is a tax free lumpsum payment payable in the event of death.
Who Needs Life Cover?
Life Cover is especially important if you have children. Life Cover is not for you but for your loved ones, to help them financially when you are gone.
Life Cover helps your family to pay for:
· Funeral expenses
· Replace your income
· College education for children
How Much Life Cover do I need?
This varies from person to person and depends on a number of factors such as your income, age of your children, existing loans, death in service benefits etc. In order to find out what level of cover you need, we carry out a Financial Review, however a ball park figure is 7 to 10 times your gross annual income.
How much will it cost?
Click here to get an estimate. However please contact us to arrange a Financial Review and we will also see if you apply for a discount.