Life Cover For Mortgages
Taking out a mortgage loan is a major commitment and you don't know what the future will bring when you enter this contract. Life cover for mortgages ensures that you and your family can maintain your home during the worst circumstances.
Life insurance for mortgages can be purchased to cover the mortgage payments in the event of your death, illness, redundancy or unemployment. In the event you die, become sick, are in a no-fault situation or become employed, a mortgage life insurance policy covers your mortgage payments so your family is not left homeless.
Decreasing life insurance is the vehicle most frequently used to cover mortgage payments upon your death. The sum assured decreases over the life of the policy in accordance with the remaining mortgage that is owed. This affordable option is purchased for a specific period of years and ensures the mortgage will be paid in the event of your death.
A mortgage payment protection policy (MPPI) will pay your mortgage for one to five years in the event of serious illness, redundancy, disability or unemployment. To qualify for this cover, you need to have a mortgage, be between 18 and 65 and have a job for at least six months for sixteen hours weekly or more. Often there is a period of deferral before the mortgage payments are made on your behalf, ranging from 30 to 120 days. The mortgage life insurance policy you choose should cover the amount of your monthly mortgage payments plus interest.
If you are under the wrongful assumption that the government will take
care of your mortgage during an unforeseen event, you are not alone. According
to Lincoln Financial Group, 3.85 million residents of the UK think the
government will help out with their mortgage if they are unemployed but
this has not been the case since 1995. New laws make it the homeowners
responsibility to ensure their homes and families are properly protected,
making mortgage life insurance a necessary expense to take care of the
ones you love.