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What Is Mortgage Protection & How Does It Work?


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 unable to work, 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 un-employment due to illness, injury or death.

"If something happened to you today, would your loved ones be able to remain in the family home?"


Another term for mortgage protection insurance is Decreasing-term life insurance, meaning the amount of cover decreases over time in line with your mortgage value. 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.

This payout can also be used to cover household bills, meaning certain providers cover up to 125% of household payments when making a claim (This is dependent on providers and eligibility after answering the questions with one of our friendly advisors.)

The same as when you take out level-term life insurance the amount of your monthly premiums is set at; depends on multiple factors such as:

  • Age

  • Occupation

  • Smoking Status

  • Mortgage Cost

  • Salary

Just to list a few if you would like to discuss this further feel free to give us a call on 0333 188 7617 and one of our friendly advisors can help you through every step of the way.

Depending on the provider there are certain factors that make you not entitled to make a claim such as:

  • Voluntary Redundancy

  • Being Sacked From Your Job

  • Self Inflicted Injuries

  • Pre-existing illness or injury.

This again is all dependent on the provider and one of our advisors can discuss this further with you on 0333 188 7617.

Do You Need It?

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. So, the question you need to ask is...If you were unable to work or should the worst case happen could your family remain in the family home?

If you feel there could be better options to securing your families future check out our other articles here and make sure you follow us on social media so you never miss out on ways to protect yourself and your family.

Your Choice Cover,

12 Celtic Trade Park, Bruce Road Fforestfach, Swansea, SA5 4EP

Phone: 0333 188 7617

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