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.