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  • Writer's pictureMatthew Pigrome

Mortgage Protection Policies: What You Need to Know

Updated: Jun 10, 2023

Taking out a mortgage is one of the biggest financial commitments you will make in your lifetime, and it's important to protect that investment. One way to do this is by taking out a mortgage protection policy. Here's what you need to know.


What is a Mortgage Protection Policy?

A mortgage protection policy is a type of insurance that pays off your mortgage if you die, become critically ill or disabled and are unable to work. It provides peace of mind that your family won't have to worry about mortgage payments if the worst were to happen.


Types of Mortgage Protection Policies

There are three main types of mortgage protection policies: life insurance, critical illness cover, and income protection.


Life Insurance: This type of policy pays out a lump sum to your family if you die, and can be used to pay off your mortgage.


Critical Illness Cover: This type of policy pays out a lump sum if you are diagnosed with a critical illness that's covered by the policy. The lump sum can be used to pay off your mortgage or cover other expenses.


Income Protection: This type of policy pays out a regular income if you are unable to work due to illness or injury. The income can be used to cover your mortgage payments and other expenses.


Choosing the Right Policy

When choosing a mortgage protection policy, it's important to consider your individual circumstances and needs. For example, if you have dependents, you may want to consider a life insurance policy that pays out enough to cover their living expenses as well as your mortgage.


It's also important to consider the cost of the policy and how it fits into your overall budget. You can use online calculators to get an idea of how much cover you need and how much it will cost.


Working with Mortgage321

Mortgage321 can help you find the right mortgage protection policy for your needs. We can provide you with advice and guidance on the different types of policies available, and help you compare quotes from different providers.


In addition, Mortgage321 can also help you with other aspects of your mortgage, such as finding the right mortgage product and arranging the application process.


In Conclusion

Taking out a mortgage protection policy can provide peace of mind and protect your investment in your home. By considering your individual needs and working with Mortgage321, you can find the right policy for your circumstances and budget.

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