Mortgage Life Insurance
Mortgage life insurance cover is a type of insurance designed to secure the family home without worrying about the mortgage. The whole purpose of this type of cover is to help pay off your mortgage if you pass away during the length of the policy.
Benefits of Mortgage Life Insurance
- Prevent repossession.
- Stop the stresses of missed repayments.
- Protect your property
- Receive a cash lump sum.
There are three main types of mortgage life insurance: decreasing term, level term and whole of life insurance. When searching for the right policy it has to depend on you’re circumstances and what type of payout you are looking for if you pass away.
Decreasing term mortgage life insurance
Mortgage decreasing term assurance help’s protect a repayment mortgage, so the cover reduces roughly in line with the way a repayment mortgage decreases.
Level term mortgage life insurance
Mortgage Level term life assurance covers you for a fixed period and pays out a lump sum if you pass away during the policy term.
Whole of life insurance
Whole-of-life insurance cover pays out a lump sum when you pass away. The size of the pay out depends on your policy. With some policies, you can stop paying once you hit a certain age, but with others you can either make monthly or annual payments until you die.
The type of insurance you need will depend on your mortgage.
Interest Only Mortgage
If you have an interest only mortgage your debt will stay the same throughout the term of the mortgage. You'll need a level term policy to pay it off.
If you have a repayment mortgage, your mortgage debt will decrease as you pay it off. A decreasing term policy will cover you for what's left to pay on your mortgage.
- The employer takes out a policy on the employee and pays the premium.
- The policy term cannot exceed the employee's 75th birthday.
- Can cover up to 25x Salary and Dividends
- Maxium Legnth Of Plan is 40 Years.