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Mortgage Protection Insurance


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:

  • A redundancy option, that pays your mortgage for six months if you are made redundant,
  • Whether your payments are affected if you are receiving other benefit payments, such as income protection, and
  • Waiver of premium, so that your premiums will be paid for by the insurer if you are unable to work.

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.