What Is Mortgage And Life Protection Insurance?
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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.
About The Author: Launched in March 2003, BestDealInsurance
(http://www.bestdealinsurance.com) are a completely independent
specialist broker. They offer the full range of life insurance
to mortgage protection cover, ensuring that their clients have
the protection they need, without leaving a hole in their
pocket.
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