A mortgage is one of the biggest debts you can have, it makes sense to protect it, right?
When you get a mortgage, you’re probably going to be swamped with forms, legal documents, and little jobs to do. But don’t let this get in the way of what really matters.
Your mortgage is one of the biggest debts you’ll ever have, so covering it with a life insurance policy is essential if you want peace of mind and financial security for your family.
Mortgage life insurance - let’s talk about it
Getting life insurance for your mortgage could make all the difference if the worst was to happen. This type of life insurance policy can protect your loved ones financially, even after you’re gone.
The tax-free lump sum that your policy could pay out can help pay off the remaining balance of your mortgage, ensuring your family aren’t left with the financial burden of continuing to make mortgage payments after you’re gone.
Do you need life insurance for a mortgage?
Put simply, taking out life insurance for your mortgage may not be a legal requirement. But there are a lot of circumstances in which a life insurance policy could come in handy.
What type of mortgage do you have?
If you have a repayment mortgage, the type of cover you’ll need is a decreasing term life insurance policy, as it aligns with the amount of money you’ll have left to pay on your loan and will reduce over time.
Whereas if you have an interest-only mortgage, you’ll need a level term life insurance policy, as the pay-out you can receive from this cover will remain the same throughout the duration of your policy term.
How to find the best life insurance policy for your circumstances
Whether it’s the amount of cover you need, the type of life insurance policy, or ensuring your monthly payments are affordable, getting help with finding the right cover for you is important.
At Caspian, our no fuss service is free. Our life insurance experts look at your circumstances and recommend the best cover suited to you and your loved ones. We search through the UK’s leading life insurance providers to ensure you are paired with the best insurer for your needs.
How much is a mortgage life insurance policy?
Just like every mortgage is different, there is no one set price for a mortgage protection policy either. Your policy will be based on several different factors, such as:
- Your age
- Your health and medical history
- What your job is
- If you smoke or not
- The mortgage amount owed and term
The above are just a few factors that are assessed when it comes to taking out a life insurance policy. There are other elements that are taken into consideration when taking out any life insurance policy, please always bear in mind that it’s all based on your own unique circumstances.
What we do
At Caspian, we know a thing or two about life insurance.
With over 200 years combined experience in the life insurance industry, we can help to find the right policy to protect your mortgage.
With mortgage insurance in place, you’ll have peace of mind that if the worst happened to you, your loved ones would not be left with the burden of paying off the remainder of your mortgage. Click below to get started with your free life insurance quote today.
