Why mortgage life insurance is important

Why mortgage life insurance is important can be answered in several ways. Let’s first of all look at the background in the UK.

The scale of this issue in the UK is very large. According to the Financial Reporter “Despite one in five (19%) respondents saying they had already missed at least one mortgage payment because of illness or injury, almost half (46%), of homeowners do not have adequate financial protection in place” ( Source: Financial Reporter)

You are not legally required to have life insurance when you take a mortgage, but it could be a precondition of your lender that Mortgage Life Insurance is required. Read your lenders terms carefully and make sure that you are complying with their terms. It is there for their protection and yours.

Why take out mortgage life insurance

If you are required by the terms agreed with your lender, then this is something that you need to act on. Take advice at an early stage so you get the best fit for your needs and have time to look at competitive quotes.

There are many good reasons to consider mortgage life insurance when you are not required to take out a policy. How would your dependants cope financially without your income? Your mortgage is likely to be the biggest debt you will have but do you need to consider other financial commitments also?

Consider Decreasing terms life insurance for mortgage protection

The questions of affordability will arise as an issue at an early stage. One way to consider reducing the cost over time is to consider decreasing term insurance.

It works so that the amount of money paid by the policy decreases over time so that it matches the reduction in your level of mortgage as you make repayments.

What is the cost of mortgage life insurance

The cost of Mortgage Life insurance will vary and depends on a range of factors which include:

1. Your age
2. Your Health (including underlying health conditions)
3. Whether you Smoke
4. Your Lifestyle- Is it healthy?
5. Location of home and work
6. The job you do
7. Single v’s joint policy coverage

It is likely that you will be required to filling in a questionnaire with answers to question on the above list. Make sure you always give complete and accurate answers. Try not to be put off by these questions.  It is a competitive market so you should ensure that you get competitive quotes from the leading insurers.

Mortgage Life insurance joint or single

If you have a partner and family, then considering a joint policy for mortgage protection could be a good idea to consider.

Consider what would happen if either you or your partners were to die. The financial impact could be enormous, so this is a good time to think about your wider family and how to protect them .

• Life insurance for mortgages in UK

The market in the UK is very competitive so you should look around for the best deal. There are also other insurance products like Critical Illness insurance that you might want to consider alongside Life Insurance.

Take advice at an early stage. At My Life Insurance we are always ready to help so get in touch if you need help and advice.