Mortgage Planning

Mortgage protection for payment solutions.

Mortgage protection insurance covers the loan (taken from finance companies or banks) repayments made by borrowers in the event that they are unable to meet them, for example, through illness or disability. The insurance company pays off the loan amounts outstanding to the finance companies or banks who are the beneficiaries.

One can opt for a level term insurance or decreasing term insurance. Generally a term assurance is taken to cover the repayment of a mortgage in the event of the death of the mortgagor during the period of the loan. In the case of a repayment mortgage the capital sum outstanding is gradually reduced over the term of the loan (although slowly during the initial years when the majority of the repayments are paying the interest) so that decreasing term assurance would be incorporated in the policy.

It is essential that mortgage protection is well designed to cover all costs of paying off the mortgage.