Life Insurance

Mortgage protection life insurance is an insurance intended to ensure that your mortgage is fully paid off in the event of your untimely death.It therefore brings peace of mind and a sense of security to those who would otherwise be left with the additional worry of how to find the money to pay off the mortgage. At such a sad and stressful time it is obviously something they could well do without.. Be careful not to confuse mortgage protection life insurance with mortgage payment protection insurance, which enables you to continue your repayments if you become unemployed, have an accident, or suffer a long-term illness.The most traditional method of mortgage life insurance has always been by means of a decreasing term arrangement, in which the potential insurance payout sum decreases over the term of the insurance, in line with the decreasing mortgage balance owing, so that by the end of the mortgage term, the insurance payout has reduced to zero.However, in more recent times a fixed term arrangement has become more popular. In this case, if you die before the expiry of the insurance term the mortgage can be repaid from the proceeds and your beneficiaries are left with a lump sum payment from the remaining balance.This type of cover offers a guaranteed policy pay out amount and guaranteed premium payments throughout the term of the insurance, which can be agreed at 30, 25, 20, or any number of years, at the outset.As is the case with any insurance policy, it is wise to do some thorough research in order to find the one which is most beneficial and convenient. There are the usual advantages and disadvantages, so you do need to find the right balance.