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.
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