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What is mortgage protection insurance?
Mortgage protection insurance is a type of life insurance. If you become ill or die during the policy term, it pays off the rest of your loan. This means your family would be able keep their home and have one less thing to worry about.
Mortgage protection is also called decreasing term life insurance and decreasing life cover. It’s the same product.
Do I need mortgage protection?
Buying a house is one of the biggest financial decisions you’ll make. When thinking about taking out mortgage protection, consider:
How much mortgage protection do I need?
Call us on 0808 169 1090 to speak to an adviser, or get a quote
How does mortgage life insurance work?
Once you’ve bought a mortgage protection policy:
Mortgage Protection - FAQ's
Mortgage protection insurance is a type of life insurance.
The key difference between the two comes down to the reasons you are taking out the cover.
For example, some may want to protect their family's finances if they die, and that's their priority. Others may want to make sure their family can keep their home if something bad were to happen.
If you need advice on what type of cover you need, call us on 0808 169 1090 to speak to one of our financial advisers.
If you die and your mortgage loan hasn't ended, the debt still needs settling.
If you have insurance, this will pay out and pay off the outstanding amount.
If you have whole of life insurance or term life insurance, your family will receive a tax-free lump sum. They can then use this money to pay off your mortgage should they want to keep the house.
Existing debts, like your mortgage don’t disappear. When someone dies, the debt still needs to be paid off.
The executor of the estate usually pays this. Any savings are then passed on to the family or other named beneficiaries named in the will.
No, legally you do not have to take out life insurance to get a mortgage. Some mortgage providers will recommend you take out insurance when taking out your mortgage.