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Mortgage Protection Insurance

For most people their mortgage payment is their largest monthly cost.  It is therefore essential that you consider the financial impact on your family if you were to die, leaving a large debt such as this. Mortgage protection insurance, or Decreasing Term life insurance, is designed to provide a lump sum to pay your mortgage balance in the event of your death.

The level of cover for mortgage protection insurance decreases over time. This is usually in line with the size of your mortgage. We have access to a large panel of providers for mortgage protection, helping us to obtain then best possible policy for you.

What is Mortgage Protection Insurance (Decreasing-term Life Insurance)?

How does it differ from Level-term Life Insurance?

Mortgage protection insurance (MPI), often referred to as decreasing term life insurance, pays out a lump sum if you died. The payout would be used to pay off the amount remaining on your mortgage. As mortgages reduce as you make monthly repayments, the life insurance benefit will do the same. For example, at the start of the policy the benefit may be £250,000, the same value as your mortgage. After 10 years of repayments, the benefit may be £150,000, matching the amount you have left to pay on your mortgage.

Level term life insurance pays out a set amount if you die within a certain period. For example, a policy which pays out £100,000 if you were to die at any point in the next 25 years. Mortgage protection insurance differs to this as the benefit reduces over the term of the policy. However, both policies are designed to provide financial security to your family if something were to happen to you.

Why do I need Mortgage Protection Insurance?

For many families throughout the UK, mortgage repayments are their largest and most important monthly outgoing. Similarly, 1.4m households in the UK struggle to make that payment every month. That begs the question, how would your family cope without your income? Mortgage protection insurance, or decreasing term insurance, gives your family financial security if the worst were to happen. It means that if you were to pass away, your loved ones could remain in the home and have one less worry at a difficult time. In short, if you have a mortgage, life insurance is essential.

In addition, most banks will insist you take out a life insurance policy to ensure you’ll be able to afford to keep up with repayments or pay back the principle loan. These are often overpriced as they are sold by the bank, for the bank. You are free to put in place you own cover and that is where Your Choice Cover comes in!

  • Mortgage repayments

  • Financial security

  • Dependants' future

  • Reasonable premiums

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