I wanted to know if it is worth taking out Life Insurance to protect a mortgage? Is Mortgage Life Cover a good idea?
- Victoria Slade
- Independent Protection Expert
When deciding whether it is worth taking out Mortgage Protection Life Insurance you really need to think about who you are trying to protect.
Firstly, Mortgage Life Cover is a type of Life Assurance designed specifically to pay out a lump sum to repay your mortgage loan if you were to pass away.
Thus, if you were to pass away the loan could be repaid, leaving the house debt-free to your chosen inheritor. The inheritor is usually a partner or family member(s), and therefore the purpose of this cover is usually to protect family members.
If you do not have a partner or children then it may not be worth taking out cover. However, if you’re in a situation where any partner would have financial difficulties meeting loan repayments on their own then life cover can be a very important policy to take out.
This is why Joint Life Insurance is a very popular plan with couples taking out a joint mortgage.
It is also worth noting that Critical Illness Cover can be added to your Life Assurance plan to cover the risk of suffering a serious illness or injury.
Naturally, with this policy addition the combined plan would now protect you as well as your family, which often makes critical illness protection a worthwhile policy addition.