Are you looking to compare life insurance quotes to help pay off your mortgage?
For most of us, a mortgage is the biggest regular outgoing, and in turn that makes it the biggest financial worry for loved ones if the main wage earner dies before it’s paid off. Mortgage protection is an ideal way to remove that worry, though it’s well worth shopping around.
You have two forms of mortgage protection to choose from, both of which are special types of life insurance. Mortgage term insurance is very similar to level term insurance, in which you specify the sum assured in advance, you pay a fixed monthly or annual premium during your chosen duration of cover, and the policy only pays out if you die before the end of the cover period.
The only real difference between mortgage term insurance and level term insurance is that with the former you intentionally set the sum assured to cover the outstanding debt on the mortgage, and that’s what the money is earmarked for . Also, you’ll usually set the cover period to match the time left on your mortgage.
With a mortgage life insurance policy you have the option of “decreasing cover”. The sum assured continually decreases in line with your outstanding mortgage. The idea here is that the policy works better with a capital repayment mortgage where the amount it would take to pay off the mortgage after your death is continually decreasing.
The comparative costs of the two types of mortgage protection depend on your specific circumstances but as a rule of thumb decreasing term insurance will often be cheaper because the longer you live, the less the insurers stand to pay out. Remember that with both types of mortgage protection, your premium payments usually remain the same throughout the rest of the mortgage period: they don’t go up like some life or health policies, but they don’t drop even if the cover amount is falling.
Because it doesn’t just take into account your demographic details but also your mortgage amount and remaining period, mortgage protection quotes are highly personal. In turn that makes it very hard to have simple guidelines about what’s a reasonable market price to pay. To be sure of getting the best deal you’ll need to compare as many insurers as possible, which is where I’m Insured comes in.
Using our market comparison tool you can get quotes from a wide range of insurers in a matter of moments. It’s an incredibly simple process as you don’t need to provide much more detail than your mortgage amount and period, your date of birth, your sex, and whether you are a smoker (or recent quitter.) Once you see the list of prices you can read full details on any policy before going on to buy it.
In many cases, the price available through us will actually be cheaper than you’ll find from going directly to the insurer in the first place. That’s because we don’t claim the full commission which the insurers offer to some comparison services to win business.
We also include the option to search for critical illness cover, which is a common add-on with mortgage protection policies. It means that if you develop a critical illness the mortgage protection policy will pay out immediately, meaning you don’t have to worry about being unable to pay the mortgage if and when you stop work for medical reasons.
You can also choose between single and joint policies. The latter is a little more expensive, but means that two people can be covered. The policy will pay out if either person dies before the mortgage term ends, though it only pays out once.
While our comparison tool is suitable for most customers, you may want to contact us for a custom quote if you have special circumstances. The most common of these is having a pre-existing health condition that could affect the premium an insurer offers you.
Before buying any mortgage protection policy, be aware of a couple of important legal points. It’s not a saving scheme and it isn’t classed as an investment. The policy only pays out if you die during the mortgage term, so it’s possible your beneficiaries won’t get any payout, or could receive less money than you’ve paid in. You also need to be aware that by taking out a policy you commit to paying all the premiums; if you stop paying, you won’t get any refunds and your cover will usually cease.