Owning a home involves making provisions for how to protect it after you’re gone, which can mean consideration of a mortgage life insurance policy that will pay off your mortgage in the event of your death.
As a rule, no. Some lenders may require you to take out a mortgage life insurance policy in certain circumstances, such as if you’re self-employed or you have a small deposit, as it is designed to protect the lender.
This depends on what you want to achieve from what you leave to your beneficiaries. In the event that there is nothing specific in place to cover your debts, this comes from your assets. Accordingly, if you want to ensure that your loved ones get a specific sum without anything having been deducted to take care of your debtors, then a mortgage life insurance will be worthwhile.
There will be a monthly premium payable, but the amount you pay will be calculated on a number of factors like your age, health status and the outstanding mortgage amount. Our affiliated brokers will be able to give you a free quote.
You are at risk of the policy being cancelled and losing the payments that you have already made if you miss payment of a premium. The broker will be able to advise you in this regard and confirm that it is a good idea to pay by Pre-Authorised Debit to make sure the payment isn’t accidentally missed.
No, you can take it out at any time during the life of your mortgage.