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Mortgage Protection Insurance
Introduction to mortgage protection and mortgage repayment insurances
Mortgage repayment, or mortgage protection, insurance is designed to pay your mortgage in the event that you are unable to, either through death or disability.
This form of insurance provides certainty and security for you and your family. You can be comfortable in the knowledge that your family home will not be sold from under you if, through death, illness or accident, you are unable to make mortgage repayments.
Two types of this insurance
Mortgage protection and mortgage repayment insurances come in two forms - life insurance and disability insurance.
In the event of your death, mortgage protection life insurance cover will repay the outstanding balance of your mortgage. Whereas, if, through either illness or accident, you are unable to work, disability cover will make regular mortgage repayments on your behalf.
Watch for the additional options
There are some additional features you should look out for, which may suit your personal situation. These include:
Is mortgage insurance right for you?
If all you want to do is to protect your mortgage, then this sort of cover is perfect. However, the Shape of Money does recommend that you consider comprehensive life insurance if you have dependants, and income protection insurance regardless of whether you have dependants or not.