Mortgage Insurance advice

sdean

Hi Everyone.
I really don't know what insurance I should be searching the web for...!

I am looking for some sort of life insurance that I can take out, that will ensure should my death occur that my mortgage debt will be paid.

I am in the process of buying a house - awaiting approval of my sole application but would like to ensure that my partner never needs to worry wrt mortgage payments should anything happen to me..

I am not looking for a PPI as I am fortunate to have savings that will cover (12 months) payments should become unemployed or off sick.

Can anyone advise?

Many Thanks in advance ;-)

benjaminM

To ensure your mortgage is cleared in the event of death you need decreasing term assurance. This is the cheapest form of life assurance and is guaranteed to clear a repayment mortgage. Depending on your budget you could also have an element of level term assurance which would provide a lump sum. This way the house would be paid off and your surviving partner would also receive extra money to help with living expenses. I would suggest you speak to a mortgage broker or ifa to discuss all your options. Life assurance is relatively cheap compared to other protection insurances. Remember if you get offered critical illness cover although very worth while it is far more expensive than life.

Hope this helps

yelf

having 12mths of savings is no reason not to take out protection: if you are off work longer than 12mths then what will you do?

"would like to ensure that my partner never needs to worry wrt mortgage payments should anything happen to me.."

dunstonh

PHI replaces the need for PPI in this case.