Mortgage Protection
During the average person's lifetime their biggest outstanding loan will be their mortgage and therefore this debt is the most important to protect.
The aim of a Mortgage Protection policy is to pay off a mortgage if the Life Assured dies during the term of the plan.
There are two main types of policy which should be chosen and this depends on the type of mortgage you have.
If you have an interest only mortgage then a level term assurance plan should be chosen (as well as a repayment vehicle for the loan), where the benefit remains level during the term of the plan - normally the full mortgage amount. Or for a slightly cheaper premium and if you have a repayment mortgage, a decreasing term assurance plan can be chosen, where the cover decreases over the term of the plan - in line with the expected reduction in the mortgage loan.
To provide a comprehensive policy other options are available for an extra premium. These include:
- Critical Illness Cover
- Indexation for level cover only
- Mortgage Payment Insurance and Unemployment Cover
- Single or Joint life Cover
- Waiver of Premium
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