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What is mortgage protection insurance?
When you get a mortgage to buy your home, you will generally need to take out mortgage protection insurance.
This is a particular type of life assurance that is taken out for the term of the mortgage. It pays off the mortgage if you, or someone you have the mortgage with, dies.
If your lender offers a particular insurance policy, you do not have to buy it. You can shop around for a mortgage protection policy that suits your needs. Your lender cannot refuse you a mortgage because you don't buy the policy it offers.
Mortgage protection should be paid on a joint life, first death basis. This means that the mortgage is repaid when the first person dies if you are a couple.
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Exceptions to the legal requirement to have mortgage protection insurance
You do not have to take out mortgage protection insurance if:
You are over 50 years old.
You already have enough life insurance to pay off the home loan if you die.
You cannot get this insurance, for example, because of a current serious illness or dangerous job
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Types of mortgage protection insurance
Reducing term cover: The amount that this policy covers reduces as you pay off your mortgage and the policy ends when the mortgage is paid off. Your premium does not change, even though the level of cover reduces. This is the most common and cheapest form of mortgage protection.
Level term cover: The amount you are insured for remains the same for the term of the mortgage. So, if you die before your mortgage is paid off, the insurance company will pay out the original amount you were insured for. This will pay off the mortgage and any remaining balance will go to your estate.
Serious illness cover: You can add serious illness cover to your mortgage insurance policy. This means your mortgage will be paid off if you are diagnosed with and recover from a serious illness that is covered by your policy. It will also be paid off if you die. This is more expensive than other types of cover.
Life insurance cover: You can use an existing life insurance policy as mortgage protection insurance. You can only do this if the life insurance policy provides enough cover and is not assigned to cover another loan or mortgage
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What is mortgage repayment protection insurance?
Mortgage repayment protection insurance is a type of payment protection insurance.
It will repay your mortgage for a certain amount of time if your income is reduced because you have an accident or are made redundant, or for any other reason covered by the particular policy.
This type of insurance is usually optional and will typically cover payments for 12 months. 
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- Avalon Broker - Mortgage Protection
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We are insurance professionals with over 16 years of experience in this field.
We specialise in creating and managing insurance products, providing our clients with reliable protection and peace of mind.
Our experience spans both individual and corporate insurance, allowing us to offer a wide range of services tailored to the different needs of our clients.
Avalon Broker's experience and attention to detail have made us a trusted partner for many clients. We constantly improve our knowledge by monitoring new trends and changes in the legislative framework in the insurance industry. This allows us to offer relevant and effective solutions that meet modern requirements.
