04/12/2020 0 Comments
What exactly is Mortgage Protection Insurance?
Mortgage Protection Insurance is a policy that pays off your existing mortgage if you or another policy holder dies during the term of the mortgage.
If you have a joint mortgage, both people will be required to have mortgage protection insurance.
Do you have to have mortgage protection if you have a mortgage
In almost all cases, your mortgage lender will require you and any other person on the mortgage to have a policy in place before the mortgage can begin.
Can you tell me the difference between mortgage protection insurance and life Insurance ?
Essentially a mortgage protection policy is designed to pay off your
mortgage should the worst happen.
The balance on your mortgage reduces over time and the mortgage protection policy will pay off the outstanding balance.
With a life insurance policy, the amount insured does not reduce in a term life policy.
Must I take out the mortgage protection policy with my existing mortgage lender?
No, not at all.
Our team here at Citywide Financial can advise on and secure for you alternative policy quotes from Ireland’s leading Insurance companies.
What is the situation if I stop paying my mortgage protection policy?
We strongly advise that you never stop paying your mortgage protection policy..
If you do, you are in breach of the conditions set out in your mortgage agreement . Should you be experiencing difficulties in making the payment, you should liaise with your broker/ lender immediately to find a resolution.
The principle reason for maintaining your mortgage protection payments is that if you passed away and the policy had elapsed, your family and loved ones might not be in a position to continue the mortgage repayments thereby leaving the possibility of losing the family home.
What does mortgage protection cost ?
The cost is usually quite reasonable and affordable mainly because the balance on cover reduces over the term in line with the mortgage. Also the risk of dying during the mortgage term is relatively low.
Would I have to undergo a medical examination for mortgage protection cover?
If you have no health issues, the answer is normally no.
However, should you have a history of health conditions and making an application for a large amount of cover,then you will almost certainly be required to undergo a medical examination which would be arranged and paid for by the insurance company/lender.