What You Need to Know About a Mortgage Assurance

Mortgage assurance is designed to pay off your outstanding mortgage in the event of your death. This means any dependents you leave behind are not left paying your debts. If you have a mortgage endowment policy, you will  have mortgage assurance included in that.

Most mortgage lenders strongly advise a person take out an assurance policy when they take on a mortgage. If you know what you are looking for there is no reason your policy should be expensive. You need to beware of some insurance sales people who will try to sell you stupidly priced policies with no care if it suits your individual circumstances.

One in ten children loses a parent before they have finished higher education. This frightening statistic is the reason many people decide on mortgage assurance. For those people with dependents a level term life assurance policy should more than suit their needs.  The AA offers a level term life assurance policy with premiums starting from as little as five pounds a month, subject to status.Their policies are designed for individuals or couples and have a fixed-price premium.

Their generous policies include a free accidental death benefit as well as the chance to change your cover to suit your changing circumstances. John Lewis also offers a competitively priced mortgage assurance policy with similar terms to the AA.

However, John Lewis also offers a critical illness payment. This means they will make a payment if you are diagnosed with a terminal illness with a prognosis of less than 12 months to live. You must also have less than 18 months left on your policy. Most importantly, their policy allows you to waive payments for up to six months in the event of unemployment or injury.

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