Mortgage protection

amjed_afzal

I need your help as I am a little confused
I have just taken out an £81,000 mortgage and would like totake out mortgage protection if I am out of work or ill to pay for my mortgage.

Is there a protection for this including life cover or is ittwo different things?

Thank you for your help in advance.
Amjed

ACG

Its potentially 3 different things:
You can protect your income for illness this is called income protection. For this you have 2 different options, long term cover (in that it will pay out until the end of the term of your retirement age - whichever is sooner) or Short term which will typically only pay out for 12 or 24 months.

You then have unemployment cover which will only ever pay out for 12 or 24 months.

You then have life insurance.

You can typically get life insurance and long term income protection from the same company so its one direct debit.

Apologies if i have gone into too much depth there.

amjed_afzal

Long term cover will that protect me against if I can't pay for my mortgage or is it just the term of the mortgage like 25 years

ACG

Long term income protection will allow you to protect yourself upto around 65-70 years of age.

However you can take it out over a lesser term if you wish its entirely your decision. Its income protection so it protects your income you can then use the payout for anything you like, it doesnt have to be your mortgage payments...but thats the most common use for it and other bills.