What is Mortgage Protection?
Mortgage Protection is a Life Insurance policy designed to pay off your mortgage should you die before the end of your mortgage term i.e before you have repaid it. The amount of cover normally decreases over the term of the plan broadly in line with the capital outstanding on your mortgage. Because the amount of cover decreases over the term, the cost of cover is less than a normal term life cover policy. mortgage protection
Why do I need Mortgage Protection?
When taking out a mortgage, Mortgage protection is generally required so that in the event of your premature death, the balance of the mortgage is paid off. It helps secure the ownership of your home and protect your family from a substantial financial burden if you die.
Factors Affecting Cost
The younger you are the cheaper the cover.
Your General State of Health
The better your health the more likely you are to get cover. Having an illness doesn’t necessarily preclude you from getting cover – although it may increase the price or result in exclusions.
Whether you smoke or not
If you smoke the cost of your cover almost doubles! If you have given up tobacco related products for 12 months or more you should always look at the price you are currently paying.
Your Family’s Health History
Poor history of family health could lead to either more expensive cover or maybe not getting cover at all.
Amount of Life Cover Required
The more cover the more expensive it becomes.
Number of Years you require cover for
The longer the term the more expensive the cost.