Can I Have Two Mortgage Life Insurance Policies?
Question asked by Sofia Tavares
I am currently arranging a mortgage with my partner and someone suggested taking out Joint Life Insurance too.
Many people take out Joint Life Insurance with a partner as they have a joint mortgage.
However, it is important to remember that the policy would pay out on what’s known as the ‘first event’. This means that if you or your partner should pass away then the policy would pay out and then terminate.
The lump sum could then be used to clear the mortgage but would leave the surviving partner without any protection.
Many people choose to add joint Critical Illness Cover to their Life Insurance policy. This means that if you or your partner were to suffer a serious illness or injury the policy would pay out and then terminate. Where Life Insurance and Critical Illness Cover is to cover a mortgage, joint policies can be taken out for both level and decreasing term plans.
It is important to consider whether a joint or single policy best meets your needs. By speaking to one of our advisers you can obtain impartial advice and quotes from the entire UK market.