What is Mortgage Protection Insurance?
Mortgage Protection is a form of Term Life Insurance that pays a lump sum benefit for death due to sickness or an accident and will generally also payout on diagnosis of a terminal illness. With Mortgage Protection, you will generally have the option to expand your cover to include Total & Permanent Disability and Critical Illness Insurance also.
With Mortgage Protection the amount of protection you can obtain is designed to cover the amount you owe on your mortgage at the time you take out the cover. Therefore, to be eligible for this type of insurance you will need to have a current mortgage.
The advantages of Mortgage Protection over other forms of life insurance is that it can be cheaper and the underwriting requirements tend to be less onerous.
Why might you need Mortgage Protection Insurance?
Mortgage Protection ensures that your mortgage repayments are covered in the event that something happens to you and you are unable to meet the repayments yourself. Anyone wanting to protect their home, business or investment property, should consider taking out Mortgage Protection.