What is Mortgage Protection?
Quite simply, Mortgage Protection is a policy that one takes to in order to pay off the mortgage in the event of your death. Mortgage Protection is one of the cheapest form of life insurance in that your policy reduces in cost over time as your outstanding mortgage amount reduces.
One thing that you need to decide is to have Single Policy or Dual Policy coverage on your mortgage – Discuss all your options with Alan.
The objective is to eliminate the risk of financial upheaval in the event of death. Because mortgages are typically of a high value, it is compulsory to have a protection policy in place for your mortgage – No bank or building society will lend money without a protection policy as the risk would be too high for them.
When you buy your mortgage protection from your bank or building society, you will generally charge a higher rate than is available on the open market. We advice to shop around for the best policy every few years. You could save thousands over the life of your mortgage.
If you are shopping for Mortgage Protection, you will be asked for the following:
- How much is outstanding on the current mortgage
- How many years or months remain on the mortgage (the number of years until your mortgage will be paid off
- Whether you want a single, joint life or dual life policy
We advise our clients to shop regularly for mortgage protection. Because we deal with many suppliers, we will do the shopping for you and get the cover that is most suitable for your individual situation. Talk to Alan today