Don’t leave this as a parting gift
Home. A place where you can switch off and relax. Your own space, away from the world. A place full of memories, the small ones, the unforgettable ones, and the milestones.
Everyone’s home is different. But there’s one thing that we all have in common. Whether you own it or not, having a home comes with a price.
Why mortgage protection is essential
Many families are left grappling with mortgage payments after the primary earner has passed away. It’s an issue that could affect anyone. And the truth is, it's an issue most of us tend to sweep under the rug.
Who wants to leave a legacy of debt and worry for their loved ones? No one. Yet, not taking steps to protect your family from such a burden is precisely the same as doing so.
Imagine your spouse, children, or anyone you’d leave behind having to uproot their lives. Imagine them struggling to make ends meet, possibly having to leave the family home you’ve worked so hard for.
What could happen?
If you were to suddenly pass away without the right protection in place, the aftermath could be detrimental for your loved ones. It’s easy to put this to the back of your mind. But let’s talk about it - what could happen?
- Another outgoing. When a loved one suddenly passes away, alongside the emotional blow, the last thing you’d want is a financial blow too. Plus, if your lost loved one was the main earner, you’d be without that extra income.
- Selling your family home. Moving home even when it’s your own choice can be difficult. But if you can no longer afford your mortgage, you’d more than likely have to sell your home.
- Even repossession. Unfortunately if your mortgage payments aren’t made, the worst case scenario could happen and your home could be repossessed. This is typically a last resort. But it’s simply an inevitability, if you didn’t pay your mortgage payments.
How does mortgage protection come into play?
Mortgage protection could be your knight in shining armour.
This type of life insurance is designed to pay off the remaining balance of your mortgage, should the worst happen to you.
Mortgage protection insurance can give you peace of mind that your loved ones can stay in their home, no matter what life throws your way. Your family won’t be left carrying the weight of monthly mortgage payments on their own. Instead, they’ll be able to grieve and move forward without the added financial stress.
What type of mortgage do you have?
Depending on what type of mortgage you have will depend on what kind of mortgage protection policy.
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.
If you have an interest-only mortgage, you’ll need a level term life insurance policy, as the payout you can receive from this cover will remain the same throughout your policy term.
Your parting gift
Leaving a legacy of debt, financial stress, and a burden isn’t much of a parting gift for your loved ones. One way to negate this is by taking out a mortgage protection policy.
Regular life insurance does provide a payout upon death, but it’s not tailored specifically for your mortgage. Mortgage protection insurance, on the other hand, is laser-focused on covering that exact debt.
How much is a mortgage life insurance policy?
Like every home and every mortgage is different, there is no one set price for a mortgage protection policy either. Your policy will be based on several various 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 few factors that are assessed when it comes to taking out a life insurance policy. Other elements are considered when taking out any life insurance policy; please always remember that it’s all based on your unique circumstances.
What you can do
Don't leave your family a burden as a parting gift. Instead, why not give them the means to keep their home and peace of mind intact?
Mortgage protection is more than just covering debt; it's about ensuring your family is taken care of, even when you're not around. So, why not take the first step today toward protecting your loved ones? We can help!
How we can help
At Caspian, our service is completely free of charge.
Our experts can look at your circumstances and recommend what policy best suits you and your family. We search through the UK’s top providers to ensure you’re paired with the best insurer and policy for your needs.
