Mortgage protection insurance is an insurance policy that pays the scheduled outstanding loan balance to the mortgagee (financial institution) in the event of death of the mortgagor during the loan repayment period.
Do I need mortgage protection?
Buying a house is one of the biggest financial decisions you’ll make. When thinking about taking out mortgage protection, consider:
- Your family and what would happen to your home if something bad happened to you. With insurance, they could pay off the rest of the mortgage and keep the house.
- Some mortgage providers will recommend you take out mortgage protection insurance
- Should you become ill and not be able to work, would you struggle to pay off your mortgage repayments?