There are two types of insurance that are often referred to as mortgage protection:
1) Mortgage protection life and/or critical illness insurance.
2) Mortgage payment protection insurance
What is mortgage protection life insurance?
This is a policy that pays a lump sum in the event of death of the life insured designed to pay off the outstanding mortgage debt.
What is mortgage payment protection insurance?
This is a policy that provides a regular monthly payment to cover your mortgage repayment & related costs if you are unable to work due to accident, sickness or unemployment.
So the difference between mortgage life insurance and mortgage payment protection insurance is that the former is payable upon death and clears your outstanding mortgage while the latter covers your monthly mortgage repayments for a period of time if you are unable to meet them due to illness, accident or unemployment.
The Mortgage Payment Protection Insurance we have access to is optional. There are other providers of payment protection insurance and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website at www.moneymadeclearorg.uk.
A typical costing for a 28-year-old would be £4.54 per month for every £100 of cover.
For further information please call us on 01283 567200