Mortgage Life Insurance
Mortgage Life Insurance: What is mortgage life insurance? it is a policy designed to pay out a lump sum tax free in the event of your death to help repay the mortgage for your loved ones that remain. Some insurance companies call it mortgage life assurance but both are the same policy so do not think their is any difference between the two. The only exceptions to this type of policy not providing your loved ones with enough to repay the mortgage in full are the following.
Your mortgage interest rate is higher than that of your mortgage life insurance policy and has been for some time before a valid claim and you having an interest only mortgage but a decreasing term insurance policy such as mortgage life cover then your outstanding balance would be greater on the mortgage than the policy would pay out.
Mortgage Insurance
Mortgage Insurance: The aim of this page is to give you adequate information to make sure this type of policy is right for your needs, some tips to help reduce your insurance costs and hopefully answer any questions you may have had on this type of policy.
We recommend that you take five minutes of your time to read the remainder of this page as it is designed to help you make the best choice for you and your loved ones and in turn save you money on your insurance needs.
Mortgage Life Cover
Mortgage Life Cover: In this day and age people have the right to shop about for the best and cheapest deal for their circumstances so if you have been advised that it is compulsory by a mortgage broker or lender then get them to confirm this in writing, also if the mortgage lender or mortgage broker has advised you that that the cover must be taken with them then again get this in writing as you may have a case for redress under these circumstances.
Some mortgage brokers or advisors will also get you to sign a fee agreement for this and other types of cover you have taken so they can reclaim their commission from you in the event you cancel the policy within a specific period we do not recommend you sign such documents and please check your previous documents in the last four years to ensure this is not the case if you are going to get a requote on your existing policies.
Mortgage Life Assurance
Mortgage Life Assurance: In this day and age people have the right to shop about for the best and cheapest deal for their circumstances so if you have been advised that it is compulsory by a mortgage broker or lender then get them to confirm this in writing, also if the mortgage lender or mortgage broker has advised you that that the cover must be taken with them then again get this in writing as you may have a case for redress under these circumstances.
Some mortgage brokers or advisors will also get you to sign a fee agreement for this and other types of cover you have taken so they can reclaim their commission from you in the event you cancel the policy within a specific period we do not recommend you sign such documents and please check your previous documents in the last four years to ensure this is not the case if you are going to get a re quote on your existing policies.
Why Mortgage Protection Life Insurance
Why Mortgage Protection Life Insurance: Quite simply who would wish to leave their loved ones homeless or having to move because the can not pay the monthly mortgage payments in the event of your death.
Mortgage insurance is the cheapest form of insurance to protect your outstanding mortgage balance so make it a priority and get a quote today even if you have an existing policy check out our rates to see if we can find you it cheaper than you are currently paying. Do not stop your current policy if you find a cheaper quote until the new policy has been accepted and put in place.
Mortgage Life Insurance Aims
Mortgage Life Insurance Aims: Quite simply the policy aim is to pay out an amount at least equal to the outstanding mortgage in the event of death. You can choose the amount of cover you require, the length of time you want the cover for, the type of cover and whether you wish to add critical illness cover and the type of cover you require.
If you have a repayment mortgage then a decreasing term insurance policy is adequate for your needs as this should reduce in line with your mortgage provided interest rates for mortgage do not grow more than the interest rate on the policy.
If you have an interest only mortgage then you should get level term insurance as the cover required will be set at the outset to match your mortgage.
Mortgage Life Insurance Cover Commitments
Mortgage Life Insurance Cover Commitments: Your commitment to your mortgage protection life insurance company are, to pay the premiums on the due date each month, supply truthful information on your application form, and advise the insurance company of any changes between the application and the policy going live.
Failure to supply truthful information on the application will result in a claim being turned down so please ensure you answer all questions accurately even if you have existing medical conditions as this does not mean you will be declined the cover requested.
Mortgage Insurance Risk
Mortgage Insurance Risk: This type of plan has no cash in value at any time, if you stop paying the premiums the cover will lapse after 30 days and you will need to apply for new cover which could be more expensive.
If the insurance company has underwritten your policy they may put specific exclusions in it so check these before proceeding as if any of the exclusions are a result of your death the policy will not pay out. Failure to supply truthful information on the application will result in a claim being turned down so please ensure you answer all questions accurately even if you have existing medical conditions as this does not mean you will be declined the cover requested.
Mortgage Protection Insurance Quote
Mortgage Protection Insurance Quote: When you get a quote their a a few things to bear in mind, non smoker premiums are cheaper then smoker rates and to qualify as a non smoker you generally have to be smoke free for at least 12 months. You can add critical illness to your policy and find out the difference with and without this type of cover on your policy.
You can choose the term of the policy generally between 5 - 40 years, all of the above will affect your premium and we will give you some guidelines if this is stretching your budget to far so you can at least get some cover to protect you.
Mortgage Life Insurance Further Information
Mortgage Life Insurance Further Information: The cost of your plan will depend on a number of factors and the only things you can do to alter the premium are reduce or increase the term, reduce or increase the level of cover and whether or not you add critical illness cover to the plan. In the event of a valid claim the policy will pay out the sum assured after the insurance company has satisfied it is a valid claim which the generally do very quickly to ease the stress and burden placed on your loved ones. Once a claim on the policy has been made the plan will no longer be in force and no other premiums will be paid. You can also add waiver of premium to any of these plans for a small additional premium which will pay your premiums in the event of accident or sickness for a small additional premium which is worth considering.
Mortgage Life Assurance Some Premium Tips
Mortgage Life Assurance Some Premium Tips: The quote you have obtained is too high for your monthly budget ? in these circumstance reduce the amount of critical illness cover you have applied for on the policy or reduce the term to a shorter period which will in turn reduce the premium, your circumstances will change over time and a shorter period is better than nothing when your budget is tight.
You can apply this to both types of mortgage life insurance, level term life insurance and decreasing term life insurance. Remove waiver from the quote this will also save you money and if you have applied for joint cover then try covering the main bread winner in the household with the full mortgage amount and the other partner with a reduced sum assured this may further help reduce your premiums to an affordable level. Never make the premium a burden on your monthly budget as this tends to encourage people to cancel this type of policy when the budget gets tighter with changes to your circumstances, remember some cover is better than none.
The other factor that may help you reduce your premium is to select renewable premiums as these are cheaper in the earlier years of the policy.
Mortgage Insurance Options
Mortgage Insurance Options: The options you have are single or joint cover, to add critical illness cover or not, guarantee your premiums for the duration of the policy or select re viewable premiums which gives the insurance company the right to increase your premium or not and finally whether to add waiver of premium for further protection or not.
There is no right or wrong answers to this as it will all depend on your needs and circumstances when gaining the quote.
If you find a quote elsewhere then please send us the detail of the quote and we will en devour to find a better quote in the market place for you.
Mortgage Protection Life Insurance Can I Switch
Mortgage Life Insurance Can I Switch: Yes you can switch your current policy if your circumstances have changed our you have found a cheaper premium. In these circumstances it is very important not to cancel your existing cover until your new cover has been accepted and been put in force by the new company.
As these policies have no cash in value you have nothing to lose by switching providers just extra money in you pocket every month. When you select a new policy apply in advance for the cover and get the policy to start a day or so before your next premium is due to your existing provider so your new cover is in place and you can cancel the previous cover before the direct debit date.
Mortgage Life Cover Summary
Mortgage Life Cover Summary: Our aim at Moneyandme.co.uk is to give you helpful information on your selected product and to find you the cheapest quote for your mortgage life insurance. Our quote system takes in the whole of the UK market so we can try and find you the best quote but if you find one cheaper then please let us no so we can try and improve our service for other clients, we will also see if we can find you a cheaper quote than you have obtained.
Our quote system should take you about 3 minutes to complete and you can use it as many times as you need as it is completely free. We hope this information has been helpful and thank you for taking the time to read it and hopefully obtain your policy through the site. If you feel we could improve the content of this page or for any other questions you may have then either use the feedback form at the top of the page or email info@moneyandme.co.uk and we will be happy to review your comments or assist you with your query.
Other Products and Services
Other Insurance Products: Moneyandme.co.uk offers a large selection of insurance policies including car insurance and income protection policies to protect your car loan repayments in the event of Accident, Sickness or Unemployment which we strongly recommend in the current economic climate. Our aim is to save you money on your Insurance needs whether they be mortgage protection, Life insurance, House insurance or any other products.
You will find some popular links at the bottom of this page and more specific insurance needs at the top of the page. We hope you have found this page and other pages throughout the site useful but if there is anything you think we can add or improve on then please use the feedback tab at the top of the page as we will take your feedback into consideration for the future development of this site. Moneyandme.co.uk would like to thank you for taking the time to read the information on this page and hope you found the information useful.
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The guidance and/or advice contained within this website is subject to the UK regulatory regime and is targeted to UK consumers.
Money and Me is a marketing company and we pass enquiries to the brokers who are authorized and
regulated by the Financial Services Authority for the purpose of arranging Mortgages and Insurance Products.
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