Mortgage term assurance is specifically designed to cover a capital and interest mortgage. Often referred to as decreasing term assurance, it pays out an amount sufficient to pay off the outstanding mortgage balance at time of death but very little extra.
With an interest only mortgage the level of debt outstanding on the loan remains fixed over time as only the interest is being paid. Level term assurance as the name suggests stays level over a chosen term so you have peace of mind that at point of claim the policy will cover your outstanding mortgage balance.
Income protection pays out a percentage of your income in the event of an accident or an illness for the duration of your chosen term, ensuring that your mortgage repayments and related costs are covered until you are able to return back to work.
Critical Illness cover pays out a lump sum in the event of the policyholder being diagnosed with a specified illness. Often included with life cover it can be taken out on a level or a decreasing basis to meet your mortgage requirements. Many people opt to cover a proportion of their mortgage with the remainder to be paid in the event of death.
For many homeowners not being able to meet their monthly mortgage repayments is their biggest fear. Mortgage payment protection Insurance (MPPI) is designed to cover these repayments and any mortgage related costs in the event of an accident, a sickness, or redundancy. Most policies will pay a benefit for a maximum 12 month period but there are exceptions.
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Often referred to as home insurance. Building and contents is a combined insurance policy. If you have a mortgage the lender will insist on you taking buildings insurance to cover for damage on the structure of your property and any permanent fixtures and fittings. The contents insurance covers you for your possessions in the event of theft, loss or accidental damage.