Mortgage Protection
If you have a mortgage on your family home, you are legally required (with some
exceptions) to have life insurance cover to pay off the mortgage should you die
before the end of the mortgage term. This is called mortgage protection cover.
Most lenders offer this cover as part of their home loan package. However you are
not obliged to take their cover. You can arrange such cover yourself and there are
many advantages in doing so:
• With help from your Financial Broker you can search the market for the most
competitive mortgage protection policy cover available (lenders typically use
just one insurer for their mortgage protection cover).
• You own the cover yourself so if you move to a different lender, you can take
the cover with you. Lender’s mortgage protection cover, on the other hand,
ceases when you move your mortgage to a different lender and you would
then have to take out fresh cover.
See our Life Insurance Guide below for further information on Mortgage Protection and Life Insurance in general.
