Mortgage Life Insurance
Parkview Mortgages are highly experienced professional advisers for mortgages, family protection, and home and contents insurance.
What is Mortgage Life Insurance?
Mortgage life insurance typically pays out a lump sum that can be used to help your dependents redeem your mortgage or other long-term loan if you pass away at any point during the policy term. By providing a lump sum to pay off mortgage debt, your loved ones will have one less financial burden at an already difficult time.
This type of life insurance is often referred to as a ‘decreasing-term’ policy, which means that as you gradually pay off your mortgage, your pay-out also reduces over time.
How much mortgage Life Insurance Do I Need?
With a decreasing term life insurance policy, make sure you get enough cover to pay off your mortgage from the start, then match the length of your policy to your remaining mortgage term so the pay-out reduces over the years in line with the reducing mortgage balance.
It’s important to remember that if you move home or remortgage, you’ll need to ensure you have adequate cover in place. Otherwise, you could end up with one of the following:
- a pay-out that isn’t enough to cover your mortgage
- overpaying for cover that you don’t need
- a policy that lasts longer or shorter than your mortgage
You need to make sure that your mortgage life insurance policy covers the amount left on your mortgage at the time of a claim. Not all life insurance policies give a mortgage guarantee which will fully pay off your outstanding mortgage balance.
Parkview Mortgages use a panel of life insurance providers which offer a guarantee on a successful claim they will fully repay a mortgage balance.
How much does mortgage Life Insurance cost?
The amount you pay for this type of life insurance depends on:
- your age
- your occupation
- your health and medical history
- lifestyle factors, such as whether you smoke
- mortgage amount owed and the mortgage term
What is the difference between joint life insurance and Single Life Insurance?
Joint life insurance is different to single life insurance in one main way. Two people are covered by one policy, both policies work the same way. There’s one payout, and one monthly premium. In the event of a successful claim, the policy will pay out and end.
Can I add critical illness to my life insurance policy?
You can have a life or earlier critical illness cover, which pays out on the first event, either a death or defined diagnosed of the life insurance providers critical / serious illness.
You can have a life policy with a separate or stand alone critical / serious illness policy which would pay out on defined diagnosed of the life insurance providers critical / serious illness and a death. If the death happened first, the critical illness may not pay out as the death may be from an accident or natural causes rather than a defined diagnosed of the life insurance providers critical / serious illness criteria.
Its important to make sure you have Mortgage Life Insurance policy which fits your individual needs. We work with insurers from across the market to find the most suitable insurance policies to match your insurance needs.
Contact Parkview Mortgages today for a fee free no obligation insurance review.