Importance of Mortgage Protection Life Insurance

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Importance of Mortgage Protection Life Insurance
Presented by Daniel Toriola





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Understanding the Importance of Mortgage Protection Life Insurance

By Claire Bowes







Understanding the Importance of Mortgage Protection Life Insurance

by: Claire Bowes



Your house is a big investment – probably one of the biggest you’re every likely to make. It is also the

place that you and your loved ones call home; a shelter and haven from the outside world. That’s why

it is so important to ensure that your home and family are protected in the event of your death. It’s not a

topic that any of us like to dwell on, but the sad fact is that should you die and the family are no longer

able to afford repayments on the house, they will lose the property and the roof from over their heads.



Having a good life insurance policy in place to protect your property in the event of your death is vital.

When you die, your family will have enough to worry about without the added stress of how they are

going to hold on to the family home. Your life insurance policy will ensure that this problem is

eliminated, with the mortgage balance being paid in full upon your death.



The main types of mortgage life cover



The type of mortgage life insurance cover that you require will depend upon what type of mortgage you

have, a repayment or an interest only mortgage. There are two main types of mortgage life insurance

cover, which are: Decreasing Term Insurance Level Term Insurance



Decreasing term insurance



This type of mortgage life insurance is designed for those with a repayment mortgage. With a

repayment mortgage, the balance of the loan decreases over the term of the mortgage. Therefore, the

sum of cover with a decreasing term insurance policy will also go down in line with the mortgage

balance. So, the amount for which your life is insured should match the balance outstanding on your

mortgage, which means that if you die your policy will hold sufficient funds to pay off the remainder of

the mortgage and alleviate any additional worry to your family.



With the decreasing term insurance, the cover is usually taken out over the term of the mortgage, and

payment is made should you die during the term of the policy. Once the policy has expired, it becomes

null and void, so you will receive nothing at the end of your policy if you are still living. There is no



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Presented by Daniel Toriola





surrender value on this type of cover, but it does provide a cost effective means of protecting your

home and family during the life of your mortgage.



Level term insurance



This type of mortgage life insurance cover is for those that have a repayment mortgage, where the

principle balance remains the same throughout the term of the mortgage and the repayments made by

the property owner cover the interest payments on the mortgage only.



The sum for which the insured is covered remains the same throughout the term of this policy, and this

is because the principle balance on the mortgage also remains the same. Therefore the sum assured

is a fixed amount, which is paid should the insured party die within the term of the policy. As with

decreasing term insurance, there is no surrender value, and should the policy end before the insured

dies no payout will be awarded and the policy becomes null and void.



Terminal illness benefit



Both of the above types of cover normally include terminal illness cover, which means that the

mortgage is cleared should you be diagnosed with a terminal illness rather than waiting until you

actually die. This helps to ensure that you do not have the additional worry of trying to meet

repayments when a terminal illness takes away your ability to work and earn money, and at a time

when the whole family has enough to worry about without having to stress about meeting mortgage

repayments.



Critical illness cover



Critical illness cover is another type of insurance policy that can be added on to either of the above

mortgage life insurance polices and provides an extra element of protection and peace of mind. This

type of cover can also be taken out as a stand-alone policy, but usually proves much better value if

simply added on to a main insurance policy.



With critical illness cover you will be eligible for a payout in the event that you are diagnosed with a

critical illness. If you then go on to recover from the critical illness, the payout is yours to keep but the

policy becomes null and void following your claim. The illnesses that are covered by this type of policy

are defined by the insurer so you should ensure that you check the terms when taking out critical

illness cover.



Adding critical illness cover to your policy will only increase your repayments by a small amount, but

can provide valuable protection if you are diagnosed as critically ill and are therefore unable to work.

With your mortgage repaid from the payout of this policy, you will not have the additional worry of trying

to keep a roof over your head at a time when you should be concentrating on trying to make a

recovery.



Summary



As indicated by the features of the two main types of mortgage life insurance cover, the policy you go

for will depend largely upon the type of mortgage you have. Both types of cover offer value for money,

with some really low cost deals available. Of course, the amount that you pay will ultimately depend

upon the level of cover you require. For total peace of mind it is always advisable to go for a policy with



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critical illness cover incorporated into it.



Having some form of mortgage life cover is essential to protect your home and your family. After

working hard to buy your own property, the prospect of it being repossessed in the event of your death

can be worrying both for you and for your family. A mortgage life cover policy will ensure that this does

not happen, and will give your family the security of knowing that whatever happens they will still have

a roof over their heads.









Claire Bowes is a successful freelance writer and owner of http://www.a1-life-insurance-quotes.co.uk

where you will find further information on

http://www.a1-life-insurance-quotes.co.uk/term-life-insurance.html

http://www.a1-life-insurance-quotes.co.uk/whole-life-insurance.html and

http://www.a1-life-insurance-quotes.co.uk/mortgage-life-insurance.html.









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Playing It Safe With Uk Mortgage Payment Protection Insurance

By Simon Burgess







UK mortgage payment protection insurance is one of the best things to happen to the mortgage

industry in the last few years. However, high street banks and lenders recognised an opportunity to

make a profit when they saw one, and this often clouds the general public's judgement of the product.

Many dismiss UK mortgage payment protection insurance before probing into it as far as they should

to see what it ca actually do for them.



UK mortgage payment protection insurance is a protective policy that will pay out for up to 24 months'

if an individual is sick, injured as the result of an accident or involuntarily unemployed. All three

situations would result in an individual being unable to work for a period of time and thus would

jeopardise the financial security of a household in the ensuing months, if not years. It would certainly

mean that it would be a struggle to keep up with mortgage repayments.



UK mortgage payment protection insurance will pay the mortgage and related bills, such as home and

contents insurance, for the period of time laid out in the terms and conditions of the policy. Anybody

over the age of 18 and up to the age of 64 is eligible for UK mortgage payment protection insurance as

long as they work over sixteen hours a week. This ensures that the majority of main wage earners are

completely covered, and it is often them paying the mortgage and related bills.



There are many advantages and benefits to having UK mortgage payment protection insurance. It is

an essential product these days and is most definitely worth its weight in gold to those who need it.

Even if you hope that you will never need to use it, UK mortgage payment protection insurance is worth

investing in just in case.



Simon Burgess is Managing Director of the award-winning British Insurance (

http://www.britishinsurance.com), a specialist provider of low cost income payment protection

insurance (PPI), mortgage payment protection insurance (MPPI) and loan payment protection

insurance.









Abc Mortgage Consulting

Sell mortgage ebook with advice and tips to help save time and money before applying for a mortgage.

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Presented by Daniel Toriola









Related eBooks:



Playing It Safe With Uk Mortgage Payment Protection Insurance

About mortgage life insurance and mortgage protection

When Can Cheap Mortgage Protection Insurance Protect You?

UK Mortgage Protection Insurance And The Contents Of Your Home

Life Insurance Mortgage Online Quote – How To Shop For Mortgage Protection Online



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