Mortgage life insurance Getting a new mortgage or a re-mortgage can be extremely exciting and very stressful at the same time. Protecting your mortgage with a life insurance policy is a wise choice and can give you peace of mind that your family is covered, should something happen to you. There are many questions to answer and lots to consider. If you need expert advice then you can contact iam|INSURED on 0800 009 6559 or CLICK HERE. What is mortgage life insurance? Life insurance for a mortgage is also known as ‘Decreasing Term’ life insurance. It pays out a lump sum that will clear your remaining mortgage balance if you die. This means that your home will be left to your family with no...
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We get it, you want to protect your family without the hassle. While it might seem intimidating at first, we can break everything down for you. Don’t worry though, there are just a few key things you should know when considering Mortgage Life Insurance. What is Mortgage Life Insurance? Mortgage Life Insurance is a type of Life Insurance that is designed to be used to help with large loans such as a mortgage if you were to pass away. While it is called Mortgage Life Insurance, it doesn’t necessarily have to cover your mortgage; it can be used to protect other large loans you might have. The main difference between it and other types of insurance is that the payout amount decreases over...
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Do I need mortgage life insurance? Purchasing a house is a massive financial commitment, so it's always best to get protection. Before buying life insurance it's worth considering what you need cover for. Life insurance not only covers a mortgage but can also support your family with: Paying for childcare and education costs (for example university or school fees). Help towards living costs. Paying off outstanding debts like loans and credit card repayments. If you already have a life insurance policy, you may not need mortgage life insurance. Your current insurance pay-out could already be used to cover mortgage repayments. If you are unsure whether your current life insurance arrangements...
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Whole life insurance (also known as ‘life assurance’) provides protection for the remainder of your life - so long as you keep up with your premium payments. This type of cover ensures your family of a lump sum payment no matter when you die. Typically, whole life insurance is one of the most expensive types of life insurance as it provides permanent cover. Although term life insurance is much cheaper, it may only pay out if you die within the policy term. Whole of life policies can not only cover a mortgage, but can also help with other financial considerations such as: Everyday living costs, household bills, childcare support, inheritance planning and funeral expenses. Ultimately the...
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How it works Mortgage life insurance is available in 2 types of term life cover: Decreasing term - The policy pay-out diminishes over time as you begin paying off your mortgage. It can also be used to help with other loans and debts you don’t want your family to be left with when you’re gone. This is usually the standard option taken out alongside a repayment type mortgage. It is also typically cheaper than level term insurance as the sum assured reduces over the life of the policy. Level term - Generally the more expensive type of cover, this is popular amongst people with an interest-only mortgage. The policy payout is fixed, meaning your family receives the same amount regardless of...
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Mortgage Life Insurance is a life insurance type that pays off your home loan in case of your death. It is basically a term life insurance policy with the policy term equaling the loan term - typically, twenty to thirty years. For example, if you obtain a 30 year home mortgage, you would get a 30 year term life insurance policy. This way the mortgage would be paid off in case of your death, and your family would not be left in a financial predicament. Choose a life insurance policy amount (death benefit): Getting mortgage protection coverage is always a wise choice when you first buy a home - especially if you have a family. Affordable Rates Mortgage protection life insurance policies are...
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Purchasing a home is an exciting time in a person's life. However, once you buy your home, you may start to receive adverts prompting you to insure your mortgage. Before you opt into any kind of Life insurance policy, there are some things worth considering. Let’s take a look! What Is a mortgage life insurance policy? Alternatives to mortgage protection insurance What is a mortgage life insurance policy? So, you’ve just bought a house? Then it's most likely that you had to take out a mortgage to pay for it. These are issued by loan providers like banks and building societies, then you make monthly payments over time to pay them back. Why buy mortgage life insurance? When buying a house,...
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Should you get a mortgage life insurance policy? When you take out a mortgage, you’re taking on a debt. Your mortgage needs to be paid every month or you risk losing your home. If you have dependents who rely on you and your income, it’s a good idea to get a life insurance policy. How important mortgage insurance is depends on your situation. If you’re single, with no dependents, and you live alone: It’s not needed. If you die, the bank takes over your home. If you have dependents who require your income: You should probably get mortgage insurance. The mortgage payment is a major expense for almost all families. You’ll want to have at least 10 times your income in life insurance coverage...
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Do I need mortgage life insurance? Taking out a mortgage is one of the biggest financial decisions you can make, and it ties you in to a potentially decades-long commitment. Your life is likely to change substantially in the time it takes to pay off your mortgage. You might have kids, who then might have children of their own and you could change jobs and move house. You may also develop an illness that puts your ability to pay your mortgage at risk. Mortgage life insurance covers your payments if you or your spouse should die. Here is everything you need to know about this kind of insurance. What is mortgage life insurance? The death of a major earner can have huge financial implications...
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Mortgage protection insurance is a type of life insurance. It’s sold to homeowners by banks and insurance companies who have an affiliation with mortgage lenders. Its name well describes its purpose —to protect the loved ones you leave behind by taking out a life insurance policy specifically intended to cover your mortgage payments. You’ll find that these policies work much the same way as any other type of life insurance. You select a mortgage protection insurance policy and pay monthly premiums over the term (or life) of the policy. If you pass away during the term of your policy, the policy pays out. If you outlive the term of the policy, it ends. Let’s take a look at some of the major...
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