Mortgage Protection - Life insurance plans for mortgages
Life insurance is so important that some mortgage lenders have been known to make people take out plans as part of their mortgage agreement. This is so they can be sure that in the event of the borrowers death, the outstanding mortgage debt will be repaid. This is a very good idea and will help to ensure that your family can remain in their own home in the event of your death. In many cases, they will then own the house outright.
If you want to put life insurance in place to protect the outstanding debt on your family home, the type of policy you should consider will be dependent on the type of mortgage you have.
For interest only based mortgages a 'level term assurance' life insurance policy is likely to be most suitable. For repayment mortgages, a 'decreasing term assurance' policy is likely to be more suitable. Both plans offer fixed premiums over a fixed period of time and neither include a savings element to them which helps to keep them cheaper than their 'whole of life insurance' or 'endowment life insurance' counterparts.
If you are interested in researching life insurance plans for mortgages further you should speak to an independent financial adviser.
Alternatively, you can use our interactive online research tool, the Finance Navigator. Based on the answers you give to a number of targeted questions, the Mortgage Protection Finance Navigator will help you to establish your own life insurance needs. It will then produce a bespoke guidance report for you to read through to help you make an informed decision. It will also allow you to learn more about some of the most commonly used life insurance plans.
Once you have your report, you can then use our online quotation system to find some of the most competitively priced life insurance plans from a selection of major UK life insurance providers. Once you have found the right plan for you, use our 'apply online' facility.
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