Mortgage Protection Insurance FAQs

Finding the right mortgage protection cover can be confusing and often daunting. With the help of the friendly team at we can find the most competitive insurance quotes in the market that best suit you. To make the process easy, we have listed some of the most commonly asked questions regarding mortgage protection insurance.

What is Mortgage Protection Insurance?

Mortgage protection cover pays off your mortgage should you pass away before your it is paid off. There are mortgage protection plans that can also pay your monthly mortgage payments, in some cases of up to 2 years, in the instance of sickness, accidental injury or unemployment. If you already have mortgage protection, it is likely that you are paying more than you should for this policy, in fact, can bring you real savings if you choose to switch. To see how much you can save why not call one of our helpful mortgage protection advisors now?

What does mortgage protection insurance cover?

Depending on the policy you choose, mortgage protection cover can protect you financially in various situations ranging from accident, sickness, death and unemployment. These extra coverage policies can protect you by adding such plans to your mortgage protection insurance. In regards to unemployment protection, you will only be covered if you are made redundant. Some policies may cover employment benefits such as private health insurance and company cars. Illness coverage will cover you if you have a long-term illness preventing you from working and accident coverage will protect you if you have a serious injury also preventing you from working. In an instance where this might happen, knowing you are covered will give you reassurance of knowing you and your family will be protected financially. There is a large variety of policies you can apply for that will give you different types of coverage. For example, you can choose a policy that covers your monthly bills as well as your monthly mortgage payments. There are also plans that will pay your monthly salary which may cover up to 50%.

What does mortgage protection insurance not cover?

When taking out a mortgage protection policy, it is important that you are aware of exclusions. Plans will only cover unexpected redundancy, so if you are aware you are going to be made redundant or are let go for poor performance, you will not be covered. If you are on a seasonal contract it is highly doubtful that you will have a claim unless your contract is ended unexpectedly, in which case you may be able to claim up until the agreed end date of the contract. When it comes to mortgage protection with additional serious illness cover, you will not be covered if you have a pre-existing or chronic medical condition. Many plans do not cover back conditions or mental health illnesses as well as any self-inflicted injuries.

Am I required to take out mortgage protection insurance?

When taking out a mortgage, it is the lender's legal duty to ensure you take out mortgage protection insurance cover before the mortgage itself is granted. There are several situations where you may be exempt from purchasing mortgage protection, such as; if you are over 50 years old, you are buying an investment property, you already have an existing life insurance policy. An existing life insurance policy can be used as long as it is not already covering another property and the coverage is enough to cover the mortgage. However, by choosing to do this you will not be protected for injury, illness or redundancy and will have to take out additional coverage.

Why do I need mortgage protection insurance?

It is vital that you have mortgage protection cover to ensure you are protected from unexpected situations - including death. Mortgage protection will give you the self-assurance that you, or you and your partner, will be covered in the event that either of you die. If your mortgage is in both spouse's names, it is important that your mortgage insurance plan is also in both names. In the event that you die, your mortgage will be paid off even with your surviving spouse still living in the property. In the case that your mortgage is paid off with money left over, the remaining amount will be transferred to your estate. Mortgage protection insurance is important in the sense that you and your loved ones will be looked after financially in the event of death. This is not only an imperative aspect when purchasing a property but also gives you piece of mind for yourself, your family and your home.

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