What is the difference between Mortgage Protection and Life Insurance, a question we get asked a lot! Essentially Mortgage Protection is just a form of Life Insurance, and tends to be one of the cheapest options, largely because the amount you are insured for will reduce and get smaller as time goes on and your mortgage gets paid down.
When you are taking out a mortgage you have to have Mortgage Protection, the lender won’t complete the process until you have a policy in place that covers the amount and the term (length of time) of your mortgage. If something happens and you die, your mortgage protection kicks in and clears the remaining balance of your mortgage, leaving your family the house with no debt owing on it.
As we mentioned, mortgage protection is one of the more basic and cheaper forms of Life Insurance, who have other options or add ons like Level Term Assurance, Convertible Policies and Dual or Joint cover. It might all seem very difficult and complicated but a good financial advisor can explain it all to you and guide you in your decision, that’s what we are here for!
If you would like to talk to us about Mortgage Protection or Life Insurance we would be delighted to answer any queries you have, just drop us an email or book a free consultation through our website here