Should you consider mortgage life Insurance?
If you have a mortgage who is going to keep up the monthly mortgage payments with you gone? If you live with loved ones, would they be able to afford the mortgage without you? Could they comfortably get by, would it be a struggle or would they have to sell their home with limited options on what they can afford without you?
Whilst the chances of dying are much lower than being ill or diagnosed with a critical illness, if you did die what would be the financial consequences on the people that matter most?
Mortgage life insurance can provide a low cost way of ensuring that your family are not forced out of their home in the event of your death.
If you would like peace of mind that your family can stay in their home mortgage free or your home can be inherited by loved ones mortgage free you should consider mortgage life insurance.
What we do
- Assess your financial position and consider whether mortgage life insurance is required
- Look at your options and find the right policy for your needs
- Provide free, impartial advice – we get paid by your insurer once you take out your policy
No, you don’t have to take out life insurance if you have a mortgage. It’s not something that’s included with a mortgage. If you want life cover you need to take out an insurance policy.
If you have a partner or dependents, it might make the difference to whether they can remain in their home if you die. If your death would create financial stress life cover could provide valuable peace of mind to you and them.
Life insurance comes in many forms, but the beneficiary receives a payment upon your death that can be used however they wish. Mortgage life insurance is intended to cover the remaining amount owed on a mortgage. The amount of life cover and the term will reflect your mortgage amount and term of the mortgage. If you are buying a house with another person, the life cover can be set up on a joint basis so that the life cover pays out if either of you die during the term of your mortgage.
If you contract a critical illness, you may be faced with serious ill health for a considerable period of time. Critical illness cover provides a lump-sum payment that can be used to pay off your mortgage or pay a lump sum off the outstanding balance. It can be included with a life cover policy so that your mortgage is repaid if you die or are earlier diagnosed with a critical illness covered by the policy.
We can advise you on the different options and what would be suitable for you.
Yes, if you’re over 18 and a UK resident, you should be eligible for mortgage life insurance. Some providers have an upper age limit for taking out a policy.
You might be able to get mortgage life insurance if you have a pre-existing medical issue, but your choices might be limited and you may need to pay a higher premium.
It’s important to tell your insurance provider about any medical problems that could affect your claim. If you don’t, they could refuse a pay-out.
This will depend on 3 factors:
- Your medical history
- The type of cover you are applying for
- The amount of cover you are applying for
Even if you have a clean medical history an insurer may require a medical check if you are applying for a large sum assured.