Income payment protection insurance & mortgage life insurance 
- why you may need both?

Taking on a mortgage debt is bad enough without having to think about all the other stuff that goes with it. But, you simply can’t afford to stick your head in the sand and ignore the money you owe here - you need to think about what would happen if you died or if you couldn’t make your mortgage repayments because you had an accident or lost your job.

Fact is it wouldn’t only be you who suffered here - if you have a family then you need to think about their needs. And, in the starkest of terms, if you don’t pay your mortgage your lender has every right to repossess your home - they may feel sorry for the fact that you cannot work or that your widow is grieving but, at the end of the day, business is business. So, how can you protect your monthly mortgage repayments with mortgage payment protection insurance and how can mortgage life insurance help you out?

Mortgage payment protection using income insurance - what is it?

This kind of income protection insurance policy can be set up to give you some help in the event that you cannot work because you are made unemployed, fall ill or have an accident. Here the policy will kick in to cover the mortgage repayments for a set period to give you and your family some breathing space. After all, if you aren’t earning you may be able to tighten your belts when it comes to day to day spending but your mortgage payment will stay a headache!

Bear in mind that this kind of insurance doesn’t have to be purchased from your mortgage provider - this may be the most expensive option so do shop around. Independent insurers here often offer better costs. And, if you are self-employed, check the cover carefully to make sure it will meet your needs.

Click here for to protect your household bills and mortgage payments with Income Protection insurance quote.

Mortgage Life Insurance - what is it?

Mortgage life insurance is designed to pay off your mortgage if you die. Here you need to think about how your family would cope if they lost your salary. If they couldn’t make your mortgage repayments then they could very well lose their home. This kind of policy basically gives you (and them!) the peace of mind of knowing that they can pay the mortgage off once and for all and not have to worry about it.

Again, shop around for the best quotes here - aim for the best cover terms at the lowest cost. Decreasing term mortgage insurance may be your best bet. This cover will pay out less as your mortgage goes down so it’s generally cheaper.

Click here for Income Protection information

A lot of people will take out one of these insurance options but many won’t consider both at the same time. But, as you can see, neither policy will cover every eventuality. Mortgage life insurance, for example, won’t do anything for you if you get knocked down by a bus unless you die from your injuries (and that’s hardly something to hope for!). And, mortgage payment protection insurance won’t help your partner out if you die. So, to get the most comprehensive cover you may well be better off looking at both options.

You might also be interested in Redundancy Insurance to protect your lifestyle.