Mortgage Advice

Mortgage Protection Insurance

A mortgage period of 20 or 30 years is a very long time, and many things can happen in a person’s life during that time frame, including sickness and redundancy. It pays therefore to have a mortgage protection insurance to cover those times when you might be unable to meet your monthly repayments and indeed, many financial mortgage lenders insist that you take out such protection as part of the agreement. In most jurisdictions, it is illegal for lenders to insist that you must deal with any particular insurance company, so you are free to shop around.

Life Insurance

A mortgage lender can insist that as part of the lending agreement you must take out life insurance for the value of the mortgage, over the term of the mortgage. This effectively covers the lender in the event of your death – they get paid in full for the mortgage, and the property becomes part of your estate. Again, in most places, a lender cannot insist that you deal with any particular insurance company, so you can shop around for the best deal.