How to get mortgage protection insurance
What is Mortgage Life Insurance?
Mortgage payment protection is a policy that covers your mortgage payments for you and your family in the event that you should become unable to work due to illness or injury. Without it, you could risk losing your home.
Mortgage Protection Insurance Compared With Critical Illness Cover
Both serve as a form of protection for your daily expenses if you find yourself unable to work.
What is the difference between mortgage payment protection and critical illness cover?
First of all, while mortgage life insurance pays your mortgage for you each month, critical illness cover pays out in a lump sum that can be used to pay for anything. Secondly, the list of injuries and illnesses covered by mortgage life insurance is longer, whereas critical illness cover only kicks in if you are diagnosed with a pre-defined critical illness such as cancer.
Differences Between Mortgage Protection Insurance and Income Protection Insurance
Both policies are designed to protect you and your family’s finances if you find yourself unable to work and lose part, or all, of your income due to injury or illness.
So what are the differences? Well, first of all, income protection insurance usually offers more protection, as it’s designed to cover most, or all, of your income rather than just your mortgage. However, both types of insurance cover similar injuries and illnesses.
Both types of insurance pay the insured in the form of monthly payments rather than a lump sum. However, income protection insurance pays the insured directly, and you and your family can do whatever you wish with the money. On the other hand, mortgage life insurance makes monthly payments on your mortgage, so you cannot use the money for anything else.
Pros of Mortgage Protection Insurance
- It covers your mortgage. If you were to become ill or injured to the point where you could not work, you’d probably have plenty to worry about between medical bills, operations, and supporting your family. Having your mortgage covered is one big worry off the table.
- It offers coverage if you’re self-employed. While standard employees often receive a small amount of sick pay or leave, the self-employed do not. If you are self-employed, mortgage payment protection is a great way to ensure that you’ll be able to cover your mortgage payments in the event that you are unable to work.
Cons of Mortgage Protection Insurance
- You may already have mortgage protection with your other insurance policies. If you already have income protection insurance, or a life insurance policy with a rider that covers you in the case of injury or illness, you may not need the additional protection offered by mortgage payment protection.
- You get a lot of sick pay from your employer. If your employer already offers a generous amount of sick pay, you may not need additional protection. However, it’s important to remember that even the best sick pay from an employer does not last forever. Figure out how long yours would last.
- Government benefits are enough for you to live off of. While the UK would likely offer some form of benefit to you in the event that you are injured or ill and unable to work, make sure you consider whether or not it could truly support your family. Chances are your mortgage payments are higher than what you’d receive from government benefits.
How much does Mortgage Protection Insurance cost?
This will depend on your mortgage payments and the kind of cover you’re looking for, but it’s possible to find plans as low as £10 per month.
How much does Mortgage Protection Insurance cover?
Every policy is different and tailored to your coverage needs. Mortgage payment protection typically covers your mortgage payments in full, but only for a limited amount of time. Most policies offer a payout for up to 12 months to two years.
You also usually have to wait a certain amount of time after your illness or injury before you can start receiving payments - typically this is anywhere from 30 to 90 days.
What injuries and illnesses are covered with Mortgage Protection Insurance?
Most severe injuries and illnesses that render you unable to work are covered by mortgage life insurance. However, there are exclusions. These include:
- Pregnancy and childbirth
- Self-inflicted injury
- Voluntary unemployment
- Pre-existing conditions
- Stress-related injuries and illnesses
- Chronic medical issues
- Back problems without evidence
- Mental health issues
If you fail to provide the company with accurate information at the time of applying for mortgage life insurance, your claim will be rejected in the future.
Who is eligible for Mortgage Protection Insurance?
You must be between the ages of 18 and 65 and legally employed in the UK. Some occupations are less likely to receive protection, and if you’re on a casual or fixed-term contract, you won’t qualify for mortgage life insurance. Read our reviews to find insurance provider that will suit your needs.
Where can I get a quote for Mortgage Protection Insurance?
With us! We offer free, instant quotes for Mortgage Protection Insurance and more.