Why cover:
  • 6 of 10 UK mortgage holders have life cover*
  • secure your loved ones’ well-being
  • price at all-time low, cover from £5 a month
Why us:
  • helping you find the right policy for you
  • critical illness cover; heart attack,cancer,etc.
  • the whole market compared, fast & free

Protect your home mortgage with mortgage life insurance

1.5 million families may be in risk of foreclosure since they do not have enough life insurance to pay off their mortgage.

Source: GoCompare.com, September 2011 Research

Your home is perhaps one of the biggest and most significant investments you will have in your lifetime.

“Home sweet home” is not just a saying. It is a feeling of security knowing that you and your family have somewhere to come home to, somewhere they feel safe, secured and loved.

Putting the family home at risk

Do you need mortgage life insurance?

If you have a mortgage, yes!

  • 66% of those who buy life insurance buy it to help pay for the home mortgage and other debt.*
  • 84 properties are repossessed daily.**
  • The average outstanding mortgage debt (Feb 2013) is at £112,153 for the 11.3m households that have a mortgage.**
  • £318 billion worth of mortgages are not covered by life insurance. This translates to almost 50% of mortgages that are left unprotected by life insurance.***

*Voice of the Life Insurance Consumer Surveys, Deloitte Research 2011
**Credit Action Debt Statistics April 2013
***Sainsbury’s Finance Report

But what happens if the unexpected occurs? When tragedy strikes, is your family ready to survive the blows? With the subsequent loss of income that results from your death, your family may not be able to meet the monthly mortgage payments. They may be in danger of facing foreclosure.

Mortgage payments comprise some 25% of the household’s budget on essentials. The loss of income of 1 spouse can significantly reduce that budget. Statistics also indicate that most households cannot rely on savings for an extended period.

Investing in peace of mind

The upfront costs, which includes the deposit, mortgage arrangement fees, stamp duty, legal fees, land registry fees and homebuyer’s survery or condition report, is already a considerable amount. Add to this the monthly mortgage payments. If you foreclose on the property, this means that you lose a lot of money.

Your home is an investment that is worth protecting. If you buy homeowner’s insurance to protect your home against damage and theft, isn’t it also a good idea to protect it against your untimely demise? There are even options that afford additional protection against your inability to earn an income due to injuries, illness or unemployment. Take a loot at the mortgage payment protection insurance.

If you are concerned about “losing” your premiums, you can also consider a cash-back option.

Even if there are no dependents involved (i.e. a spouse and children), it is still a wise idea to ensure that there is enough life insurance to pay off any outstanding mortgage debt. This frees any surviving family from the hassles and problems that can come from inheriting a property that is still under a mortgage.

Mortgage life insurance is a cost-effective way to cover your mortgage

Mortgage life insurance will protect your home and will pay off your mortgage debt so that your family will not have to worry about losing your home. And since the proceeds of the life insurance goes directly to the bank (who is assigned as the beneficiary), you don’t have to worry about your beneficiaries spending the insurance proceeds for other things besides your mortgage debt.

The good thing about mortgage life insurance is that those who otherwise can’t get life insurance may still be covered since mortgage life insurance does not commonly require medical examinations, particularly for small coverage amounts.

You only pay for the coverage you need

A decreasing mortgage life insurance policy (for a repayment policy) is designed to decrease the coverage every year as your debt decreases. This means that you pay lower premiums as compared to a straight life insurance policy. Please note that this is for a repayment mortgage, where the amount of the debt decreases as you pay it off. Once the mortgage is fully paid, the coverage can cease – and you stop having to pay for it. Usually, this policy is covered by decreasing term insurance and does not collect any cash value.

Get your mortgage life insurance quote now, fill our form on the right.

Other sites: critical illness cover, lifeassurance.org.