Life Insurance Search

Mortgage life insurance is a type of life cover that is designed to pay off the insured person’s mortgage in the event of their death.  Similar to other life insurance covers, the idea of mortgage life cover is to protect the financial well-being of the survivors of the insured person.  The difference in the covers is subtle.  While standard life insurance policies simply pay out a predetermined lump sum, mortgage life protection is typically set up to cover the remaining loan balance on the insured’s home mortgage loan.

Where the amount of mortgage life insurance scales down as the mortgage balance is paid off, this may also be called a decreasing term assurance.    

The ultimate objectives of life mortgage cover are to secure the future of the family left behind by the person covered by the insurance plan. It can certainly bring peace of mind not only to the policyholder, but to their spouse or partner, that they will not lose their home in the event of the insured’s death.  

One of the greatest advantages of mortgage life protection cover is that premiums are often much cheaper and more comparable to other life plans.   

Mortgage life insurance is typically set for a specified term.  Premium costs may adjust over time – you will see the term ‘reviewable’ on your quote if this is the case - and are based on the pay out coverage.  If the premiums will not change over the term of the insurance, then they are ‘guaranteed’.   

People looking for mortgage cover in the event of their death can easily obtain a life insurance quote from an online specialist.  Life insurance quotes require the individual to complete a short questionnaire giving basic information on their health, and the amount of cover needed etc. They will then be presented with a quote that will give them an idea as to the cost.  

Should the individual decide to go ahead with the application, then they will need to complete a full questionnaire – and possibly have a medical examination with their Doctor - so that their life insurance provider can determine how much of a risk they are. Someone with poor health, for example, or a family history of a serious disease, may find that their quote will jump up in price due to the premiums being ‘loaded’ by a percentage of the cost.  

However, online brokers with their knowledge of the individual life insurance providers can often match an applicant to an insurer whose criteria they meet, meaning that the customer may not pay such a high premium due to a medical related problem.   

Finally, life insurance should be considered early in life.  Adults with children need to take advantage of low cost premiums available to the young and healthy.  With mortgage Life insurance cover, the family can have their mortgage taken care in the tragic event of death.  Dealing with loss of a loved one is tough enough for people.  Having the stress of meeting financial obligations can greatly increase the burden.  Family providers can sleep better at night knowing their loved ones are taken care of with just the cost a small premium each month. 

Chris Burns has written this life insurance article.

This article does not represent ‘financial advice’ as each person’s individual requirements will be unique to their own needs. If there is something in the article which you would like to rely on, then please make sure you check those details with the person from whom you purchase any financial product or service.

The views in this article represent those of the author and not those of Netbasic Limited.