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Here we have composed a useful list outlining general features typical of most
mortgage life protection insurance policies in order to give you an idea of the
cover it offers and the way in which it operates.
- It is also referred to as 'decreasing term assurance'.
- It will protect your mortgage repayments in the event of your death or
terminal illness (terminal illness cover will come at an extra cost).
- As the amount of money owed to your mortgage provider decreases, so does
your sum insured throughout the term of your policy.
- If you die, the full amount of money owed at that time will be paid out
to your mortgage lender (the sum insured).
- When you first take out your mortgage life protection plan, you will
need to agree to the sum insured for each month of your term, the length of the
term and the cost of the premiums.
- UK mortgage life insurance can be acquired as either a single or joint life
policy.
- You policy will pay out only if you die before the end of your policy
term, or if you acquire a terminal illness. If you have a joint policy then your
plan will pay out if either you or your partner dies or acquires a terminal illness.
- For the purposes of mortgage life protection insurance, a terminal illness
is usually defined as an illness expected to cause death within a year. You will
need to advise you insurance provider about your terminal illness within a specified
period, usually eighteen months before the end of your policy's term. Refer to
your policy for details.
- If the end of the term is reached safely and without pay out, the plan
simply ends and nothing is payable to the policyholder.
- The benefit paid out by a mortgage life protection insurance policy usually
goes straight to you mortgage provider without being passed on to you personally.
Remember that every insurance policy is different- be sure to check the details
of your own personal policy to be sure of the specifications.
To read about the special features of standard mortgage protection insurance
click here.
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