Should you consider Mortgage Life Insurance instead?

Only if you have a Repayment Mortgage and want insurance cover for it.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

Hot Topics

What do you need to know about Life Insurance?
Life Insurance pays out a tax-free lump sum if you die; there is no investment value.
Should you consider Critical Illness cover instead?
If you have no dependants or already have Life Insurance, you should consider Critical Illness Insurance instead of Life Insurance.
Should you consider Mortgage Life Insurance instead?
Only if you have a Repayment Mortgage and want insurance cover for it.
What is the Difference Between Critical Illness Insurance and Terminal Illness insurance?
Critical Illness Insurance is much more comprehensive than Terminal Illness cover.
Should your policy be written “in Trust”?
We believe that all Life policies should be written “in trust”.
Mortgage Life Insurance is a form of insurance specially tailored to work with a Repayment Mortgage. The policy is designed so that your sum insured decreases at the same rate as you pay off the capital you borrowed on your mortgage. So if you died, the sum insured should be just enough to pay off your repayment mortgage but no more.

This decreasing cover reduces the cost of this type of policy. For this reason Mortgage Life Insurance is sometimes known as low cost life insurance.

An important point to know is that Terminal Illness cover is included in all Mortgage Life Insurance policies sold by Brokers Online, So you will also be insured if you are diagnosed with an illness from which a Doctor expects you to die within 12 months of diagnosis.

Be aware that Mortgage Life Insurance is not appropriate if you want to cover an Interest Only Mortgage. In this case you need to stick with level cover Life Insurance.

You should be aware that all Joint policies associated with mortgages are written on a first life basis. This means that the policy will pay out if either one of the policyholder’s were to die before the end of the policy’s term. However, it also means that once a Joint policy has paid out on the first death, the policy automatically terminates - it will not pay out again if the other person also dies.

You should be aware that if your mortgage is held jointly you will need to insure both mortgage holders.

You may also want to consider protection to cover your monthly mortgage payments if you are unable to work due to illness, accident or unemployment. If you want this type of protection you need Mortgage Payment Protection Insurance.

Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -