Saturday, May 24, 2014

Mortgage Protection Premium Plans

"Excellent value and service when arranging Mortgage protection and Life insurance."

 

A mortgage protection policy has the following features.

  • The premium is fixed for the duration of the policy

  • The primary benefit is the full repayment of the of the current balance on your mortgage. If you pass away, the insurer pays the benefits directly to a lender.

  • The premium is calculated by reference to age, mortgage amount term and your medical history. The younger you are the cheaper the policy!

  • The level of mortgage protection cover reduces from year to year as the amount you owe on your mortgage goes down. Mortgage protection policies are sometimes referred to as 'reducing term cover'..

  • A mortgage protection is not a statutory requirement if you are older than 50 when you take out your mortgage. However a lender may still require that such a policy is taken out before they will approve an application.

  • Serious illness cover is available as an option with most mortgage protection policies.The level of cover can be for the full amount of the outstanding mortgage, or it may be a percentage of the balance.

Matters to consider

In general, even if you are over 50, we recommend, that as long as the cost is not prohibitive, you should have have a protection policy, to support a mortgage, whether or not it is assigned to a lender.

We strongly recommend taking out life insurance policies to support residential investment property mortgages.

A level-term policy may also be used as security for a mortgage . These policies are more expensive, (see our quote calculator) but they have the following benefits:

  • The cover does not reduce over the term of the mortgage

  • It can be quite inexpensive to cover both first and second lives

  • You can add a conversion ,which allows you to take a policy for an equivalent term and amount in the future without having to provide updated medical evidence

  • You can inflation proof your policy through indexation

  • You may be able to use the policy as security for another mortgage in the future.

You may also want to consider income protection, which is an insurance policy to ensure your income continues in the event of an accident or illness.

 

Compare Us,Get a Quote..CLICK HERE

 

Visit our Websites:

http://www.ensuritygroup.com/ 

http://www.yelp.com/biz/ensurity-group-dallas-3

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