Mortgage Insurance - Keeping the keys to your home
Mortgage Insurance is an important part of the house buying process. We believe providing you with ethical, holistic advice is essential.
We will make sure you are aware of the risks involved when buying a property, and help guide and educate you along the way, enabling you to make the right decisions based on your needs and attitude to risk.
Life insurance
It might be difficult to think about, but would your loved ones be able to cope financially without you? There’s no better time than now to start thinking about life insurance.
Life insurance pays a cash sum to the people of your choice upon your death. You decide to whom the money it goes, and the amount paid out depends upon the plan you choose.
Life insurance can also cover the cost of:
- Inheritance tax liability
- Funeral costs
- Outstanding debts
- Business Protection
Talk to us today about how you could ease the financial strain on your family if the worst were to happen to you. As an independent broker, we can source from a wide range of providers to ensure you select the level of cover suitable for you.
Simply contact us to get a quote.
Critical illness cover
Being diagnosed with a serious illness can have a devastating impact on your ability to care for yourself and your family.
Critical illness cover is designed to pay out if you are diagnosed with certain life-threatening illnesses. The policy will pay out a tax-free sum upon diagnosis.
Conditions plans usually cover include:
- Cancer
- Stroke
- Kidney failure
- Some forms of heart attack
- Serious procedures such as a coronary bypass or transplant
You can purchase a plan as a standalone policy or combine it with life insurance cover. As an independent broker, we can advise from a wide range of providers to ensure you select the level of cover suitable for you.
Income protection
If you were ill for an extended period of time, would you have enough money through sick pay to pay your bills? Income protection gives you the peace of mind that your family’s needs will be looked after should you be unable to provide for them.
You will usually receive between 50% and 70% of your income if you need to claim.
We will advise you fully on all your options to ensure you find the level of cover most suitable for you.
Health Insurance
Health Insurance sometimes none as Private Medical Insurance (PMI) gives you fast access to high-quality private medical facilities and medical treatments, at a time and place that suits you. It also plays an equally important role in helping fund the cost of early diagnosis and treatment of acute conditions.
6 REASONS TO CONSIDER PRIVATE MEDICAL INSURANCE
- Fast access to private medical treatment
- Flexible cover to suit your needs
- Access to a wide range of hospitals
- Access to the latest drugs and treatment
- Choice of consultant Comfort and;
- Privacy at a time when you need it most
Buildings and contents
You must acquire buildings insurance when securing a mortgage. It can protect you against the cost of repairing or rebuilding your home, should it get damaged by an insured risk.
You’ll need to have this in place when you exchange contracts, or when remortgaging. However, you can take it out with the provider of your choosing.
Frequently Asked Mortgage Insurance Questions
Mortgage insurance, also known as mortgage protection insurance or mortgage life insurance, is a type of insurance that provides coverage for your mortgage in the event of your death, disability, or critical illness. It is designed to protect your loved ones and ensure that your mortgage is paid off or covered in case of unexpected circumstances.
Mortgage insurance typically covers the outstanding balance of your mortgage in the event of your death. Some policies may also provide coverage in case of disability or critical illness, which could result in a loss of income and affect your ability to make mortgage payments.
Mortgage insurance is generally not mandatory, but it may be required by lenders if you have a high loan-to-value ratio or a specific type of mortgage, such as an FHA loan. It’s important to check with your lender to determine if mortgage insurance is a requirement in your situation.
Mortgage insurance is different from homeowners insurance. Homeowners insurance (also known as property or hazard insurance) protects your property against damage or loss caused by events such as fire, theft, or natural disasters. Mortgage insurance, on the other hand, specifically covers your mortgage payments in the event of your death, disability, or critical illness.
The cost of mortgage insurance can vary depending on factors such as your age, health, the amount of coverage, and the term of the policy. Premiums can be a fixed amount or based on a percentage of the mortgage balance. It’s advisable to obtain quotes from different insurance providers to compare costs and coverage options.
Yes, typically, you can choose the beneficiary of your mortgage insurance policy. The beneficiary is the person or entity who will receive the insurance proceeds if you pass away. It’s important to update your beneficiary designation if your circumstances change, such as getting married or having children.
In some cases, you may be able to cancel mortgage insurance once you have sufficient equity in your home or meet certain criteria. However, this depends on the type of mortgage insurance and the terms of the policy. Private mortgage insurance (PMI) on conventional loans may be cancellable, while mortgage insurance on FHA loans typically remains for the life of the loan.
The availability and terms of mortgage insurance coverage for individuals with pre-existing health conditions can vary among insurance providers. Some insurers may offer coverage but with exclusions or higher premiums. It’s advisable to discuss your specific health situation with insurance providers to determine the options available to you.
Mortgage insurance and mortgage default insurance are similar terms but can have different meanings depending on the context. Mortgage insurance, as mentioned earlier, provides coverage for your mortgage payments in certain circumstances. Mortgage default insurance, on the other hand, is a type of insurance required by lenders for borrowers with a high loan-to-value ratio, typically when making a down payment of less than 20%. It protects the lender in case of borrower default.
Deciding whether to get mortgage insurance depends on your individual circumstances, financial goals, and the needs of your loved ones. It can provide peace of mind by ensuring that your mortgage is covered in case of unforeseen events. It’s important to weigh the costs, coverage options, and alternatives, and consider consulting with a financial advisor to determine if mortgage insurance aligns with your overall financial plan.
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Recent Articles on Mortgage Insurance
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