Do You Need Life Insurance for Both Partners in a Joint Mortgage?
Question asked by Stan Karlson
I’ve got two houses, one of them I live in and the other I rent out. Is it okay to have a Mortgage Life Insurance plan for both properties?
It is absolutely fine to take out two Life Insurance policies for mortgage and family protection.
For example, you may have two mortgages on different properties and wish to have separate mortgage life cover for both loans. Alternatively, you may have re-mortgaged and wish to top-up your Life Insurance.
It is very important to note this is not the case for Mortgage Payment Protection, where it is usually only possible to take out cover for your primary residence. Additionally, cover cannot usually exceed the lower of 125% of your monthly loan repayment or 65% of your gross income, depending on the insurer.