Mortgage Life Insurance Comparison

Taking out a mortgage is a huge commitment! Make sure it is safeguarded so that you/your family can repay the mortgage in the event of your household losing an income due to critical illness or death. Mortgage Life Insurance can protect your mortgage balance and allow you/your family to remain mortgage free in your home in the event of:

• death
• critical illness
• permanent disability (if selected)

Naturally, it is important to find the right policy for your needs. Here are some of the main factors of mortgage life insurance comparison.

Mortgage Life Insurance Comparison

The first factor to consider is, of course, the amount of cover you need. It is essential to work out exactly how much you need to ensure your mortgage will be fully repaid in the event of something unforeseen happening. At the same time, it is sensible not to take out excessive cover, as this will unnecessarily increase premiums.

Type of Policy

The second factor to consider in mortgage life insurance comparison is deciding which type of policy to select.

The 2 most common types of life insurance are ‘Whole of Life‘ insurance and ‘Term Life‘ insurance. The ‘Whole of Life’ insurance covers you for your entire life and, will inevitably pay out at some point.

‘Term Life’ insurance, on the other hand, covers you only for a predetermined period. Most suitable for people who only want cover until their mortgage is paid off or until their children have grown up and left home. If you have 15 years remaining on your mortgage, you would usually match the term of your life insurance also to 15 years.

Guaranteed Premiums

Some policies offer guaranteed premiums, in others, premiums are reviewable. The former is usually preferable, as your premiums are guaranteed to remain the same throughout the term of the policy. Reviewable premiums are often cheaper, to begin with, but as time goes by, they may change and could increase and turn out to be far more expensive than guaranteed premiums in the long run.

Level or Decreasing Cover

You will also have to decide whether to go for level or decreasing cover.

Level cover means the amount paid out will remain the same throughout the duration of the policy. This type of policy would be suitable for someone with an interest-only mortgage.

With a decreasing term life policy, the amount of cover will reduce over time. This type of policy is suitable for someone with a repayment mortgage as the outstanding amount on your mortgage will also be decreasing as you gradually repay it.

Mortgage Life Insurance Advice

With years of experience in mortgage life insurance comparison, we can help you get the right type and level of cover to suit your individual circumstances. Please get in touch today to learn more.