Mortgage Life Insurance

Shop Around

Buying a home is the biggest purchase you are going to make in your life. That is why it is so important that you consider protecting it with Mortgage Life Insurance.

Lenders strongly recommend that you have adequate insurance cover when taking out a mortgage. However, this doesn’t mean that you are obliged to take out a policy with them. It is always best to compare a range of policies to find a better deal.

Mortgage life insurance is designed to pay off your mortgage in the event of your death. This gives your family one less thing to worry about, and a secure home, at a difficult time for them.

There are two main types for Mortgage Life Insurance:

Decreasing Mortgage Life Insurance
With this type of policy, the amount you need to insure decreases as you pay off your mortgage balance. Offer a premium that reflects the amount of cover required, which will decrease over time.

Level Mortgage Term Assurance
With this type of policy the amount covered always stays the same. The benefit is that if your family make a claim on the policy they will get the full sum assured which may be more than the outstanding mortgage balance.