What is mortgage protection?
Mortgage protection is an insurance policy that will cover the outstanding balance of a mortgage should the mortgage holder pass away. Essentially, it will ensure that no debt is passed to family members and the bank will recoup any money owed.
Do you need Mortgage Protection?
Not only do you need it, in most cases you are required to have it. There are some extenuating circumstances but for the average mortgage application, you will require mortgage protection.
Additional Insurance Cover
There are additional optional insurance policies one may wish to take out with a mortgage. Income protection is one such policy and is highly recommended. As the name suggests, Income protection covers your income for a period of time should you be unable to work for some reason.
Serious illness cover is another consideration. This cover will take care of your outstanding mortgage balance should you survive a serious illness and are unable to work. Bear in mind, the definition of “serious illness” may differ from provider to provider so be sure to read the fine print.
Nobody likes to think about getting sick or dying so unfortunately, all too often, these policies can be overlooked. This can lead to disastrous financial situations, home reclamation,s and a knock-on effect on mental and physical health.
That’s why it’s recommended you don’t forget mortgage protection insurance when you’re applying for your first mortgage.