Mortgage Life Insurance










Make an Enquiry

Mortgage Life Insurance










Make an Enquiry

MortgageKey Life Insurance

Our dedicated team of mortgage brokers have the expertise and knowledge to understand individual circumstances and find you the right life insurance deal. We can save you the energy and effort of searching through hundreds of life insurance policies. Talk to us today or fill out our online life insurance form.

Common Questions about Life Insurance:

Why should you take out Mortgage Life Insurance?

Confronting the fact that death is inevitable is something people, understandably, don’t like to think about. However, if you pass away unexpectedly, it’s vital that you have planned for your dependants. Those who you leave behind will suffer enough from such a loss and should not suffer from financial stresses too. Consider anyone whose financial circumstances and well being will affected by your death because they are financially reliant on you and plan accordingly. Without mortgage life insurance, you could be putting your loved ones at financial risk. That’s why tackling the issue of the inevitable is something you should do sooner, rather than later.

How does Mortgage Life Insurance work?

Mortgage life insurance is somewhat self explanatory in the fact that it’s an insurance to help cover your mortgage should you pass away. The technicalities creep in when you start considering the different types, the amounts and the terms. The right policy for you will depend on your individual circumstances and the level of payout your dependants need in the event of your death.

Which type of Life Insurance policy should you choose?

Whether your home is a one bedroomed flat or a ten bedroomed mansion, your home is your castle. That’s why it’s important to get the right cover in place should something go wrong. Your home will no doubt contain some of your most prized and valuable possessions. Therefore, you’ll want to protect those too. So, we’d suggest home insurance which covers both building and contents.

Decreasing Term Insurance

Decreasing term life insurance for mortgage cover is a policy in which the payout sum reduces alongside the length and total mortgage debt. This means that the amount you are covered for decreases over the term of your policy, similar to the way a repayment mortgage decreases. For instance, if you passed away in year one of a £200,000 mortgage, you’d inherit £200,000. Whereas, if you died halfway through your mortgage term, you’d only get £100,000. Therefore, this sort of policy usually has lower monthly premiums and obviously suits those with repayment mortgages.

Level Term Insurance

Level term mortgage life insurance means that the payout sum stays fixed or ‘level’ throughout your mortgage term regardless of when you may become deceased. So, even if you die within the first or last year of your term, if your policy is £200,000, that’s what your dependants will receive. An obvious benefit to this is that they may receive more funds than the remainder of the mortgage, leaving additional funds to cover bills, living costs or to offset what your salary brought into the household. However, the result of this is higher monthly premiums.

Whole of Life Insurance

Whole of life insurance is a policy which ensures a tax-free lump sum is paid out in the event of your death. The premiums are usually higher because a payout is inevitable. You don’t just pay monthly premiums for a term, you pay until your eventual death, meaning that you could be paying into your 80s or 90s. However, it whole of life insurance guarantees a fixed amount of cover because of the fixed premiums. In other words, you are aware of how much the policy costs and what it will pay out from the beginning.

When should you take out Mortgage Life Insurance?

You will no doubt be advised to take out some sort of life insurance, when you first acquire a mortgage. It’s suggested that the sooner you take out a policy, the cheaper it will be, in terms of monthly premium. Then again, that is dependent on factors such as age and health. Insurers consider you less likely to make a claim the younger and healthier you are. It is also dependent on your situation in terms of immediate family, you may not feel insurance is a viable option.

When should you take out Mortgage Life Insurance?

You will no doubt be advised to take out some sort of life insurance, when you first acquire a mortgage. It’s suggested that the sooner you take out a policy, the cheaper it will be, in terms of monthly premium. Then again, that is dependent on factors such as age and health. Insurers consider you less likely to make a claim the younger and healthier you are. It is also dependent on your situation in terms of immediate family, you may not feel insurance is a viable option.

What’s not covered with Mortgage Life Insurance?

Life insurance will only pay out should you die. Therefore, other injuries or illnesses are not covered. For that you will need to look at critical illness insurance. Also, if you die to alcohol or drug related incidents, you are likely not to receive payment. The same applies if you have existing health policies when you take out the policy.

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