Mortgage payment protection insurence

An insurance policy taken out specifically to cover a mortgage. Because a mortgage on their home is, for many people, their biggest single financial commitment, it is sensible to provide cover that will pay it off in the event of death. This is of course particularly important for someone with financial dependents - nobody wants to have to worry about potentially losing or having to sell their home at a time of bereavement because they can't maintain mortgage payments! In the past, most mortgage protection policies just provided cover against premature death. Now, many policies also include an element providing protection against loss of earnings through redundancy or long term illness. For people with a capital and interest repayment mortgage, mortgage protection policies are often taken out on a "decreasing term" basis where the amount paid out on death gradually reduces over the term, as the mortgage is slowly paid off.

For people with an interest only mortgage, the life cover is usually provided on a "level term" basis, where the amount paid out remains, as with the mortgage balance, the same throughout the term, can also be extended to include critical illness cover.

Call 0845 370 0020 for more information on mortgage payment protection insurance