What Is Mortgage And Life Protection Insurance

What is​ Mortgage And Life Protection Insurance?
Mortgage and life protection insurance which is​ also known as​ a​ mortgage protection plan does just what its name suggests .​
This type of​ policy will enable your loved ones to​ pay the​ mortgage should you​ die before it​ is​ paid off.
However it​ does more than just pay out should you​ die immediately .​
If you​ take out this type of​ insurance you​ will be covered if​ you​ happen to​ be diagnosed with a​ terminal illness from which you​ aren’t expected to​ live for more than 12 months .​
The policy may also pay out if​ you​ have taken optional cover for critical illness and are diagnosed with a​ critical illness which is​ covered by your policy .​
If you​ have taken the​ option for permanent disability and the​ worst should happen and you​ become permanently disabled,​ then you​ will also be covered.
The mortgage protection plan (not to​ be confused with mortgage payment protection insurance) works slightly different to​ the​ level payment protection plan in​ that the​ amount which it​ pays out decreases the​ longer you​ have the​ plan .​
This is​ the​ type of​ plan which would most suit those who have taken out a​ repayment mortgage .​
It wouldn’t benefit those who have an​ interest only mortgage.
While the​ cover reduces the​ longer you​ have the​ policy,​ there is​ always enough cover to​ cover your mortgage .​
Insurance of​ this type can be taken out jointly or​ singularly depending on​ the​ circumstances and there is​ no cash in​ value on​ this type of​ policy .​
As always,​ there are exclusions as​ with any insurance policy and you​ should make sure you​ understand the​ terms that are laid out in​ the​ policy .​
Shopping around can help you​ to​ get a​ cheaper deal due to​ premiums varying widely from company to​ company .​
Getting online quotes from as​ many companies as​ possible before narrowing down your choice is​ essential to​ getting the​ best deal and value for your premium .​
Many policies of​ this type will also include free accidental death cover,​ so when assessing premiums this is​ one factor to​ take into account .​
What this cover means is​ that from the​ time you​ make your application to​ you​ either being declined or​ accepted,​ if​ you​ should have an​ accident which results in​ your death up to​ 90 days later,​ then you​ are covered anyway.

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