Answered by Tom Conner
The purpose of joint mortgage life insurance is to pay off the loan if either partner passes away. This means that the remaining partner would have the funds to pay back the mortgage, thus allowing them to stay in the family home without the worry of having to meet potentially unaffordable mortgage repayments.
It is important to note that with joint cover the plan would payout once and then terminate. In other words, the plan would payout on the death of the first partner and then the remaining partner would have no life insurance remaining (the plan only pays out on ‘first event’).
It is possible to take out separate cover for each partner. This means that the remaining partner would still have their life cover in place if their partner were to pass away, which could be used for additional family protection. It usually costs around 10 to 15 per cent extra to have two separate plans relative to one joint policy.
Frequently Asked Mortgage Protection Insurance Questions
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