What is Mortgage protection life insurance?
Mortgage protection life insurance is a life insurance policy that you can use to protect your family's home in the event of your death. Should the worst happen to you, the insurance company will give your beneficiaries a pay out which will include the remaining balance of the mortgage. If you are the sole breadwinner your family could find it very difficult if not impossible to meet the mortgage payments on the house. In this situation your family could end up losing the house that you have spent so many years trying to make your own, something that you wouldn't want to happen regardless of the cost.
As with all other types of life insurance, there are many different options and types of mortgage life insurance available. One of the most common options is to take out a mortgage protection life insurance for a term equal to the remaining term of your mortgage. This way you are only wasting the minimum amount of money if you manage to outlive your policy and everything is sure to be in good hands if you don't. The main incentive of a mortgage protection life insurance policy is to secure your home for your loved ones.
Finding the perfect policy for your needs can be a complicated task, therefore it is advisable to deal with an insurance broker. There are many pitfalls which you can easily fall into when choosing a life insurance policy and if you are sorting your policy out yourself it is even easier to become a victim of one or more of these pitfalls. Using a professional broker service will hopefully make choosing a policy easier and potentially cheaper as well, should you manage to find the right deal at the right broker. With so much resting on choosing the right policy it is vital to seek as much professional advice as you can.
There are several different types of broker around and they should always tell you exactly what type of broker they are before offering you any deals. Some brokers are totally independent and can offer you advice about products and help you choose the right one. Others are simply there to make sure you don't make any mistakes with the paperwork, but are not able to offer advice. The third type of insurance broker is a combination of a broker and an agent for a particular company. Whilst they might offer other company's services too, the commission they receive might be higher from one particular company. This is also a good thing as they can pass some of their commission on to you in the form of lower prices.
Disclaimer: The information contained on this page is not intended, nor should it be construed as providing any form of financial advice or guidance as to which insurance product/policy is right for you. If you are unsure as to which product meets your requirements/needs you should always seek advice from an Insurance Professional.