WHAT IS MORTGAGE PROTECTION?
Mortgage protection insurance (MPI) is a type of life insurance designed to pay off your mortgage if you were to pass away — and some policies also cover mortgage payments (usually for a limited period of time) if you become disabled.
DO I NEED MORTGAGE PROTECTION INSURANCE?
Mortgage protection insurance isn't compulsory, however, one in two people in the UK are diagnosed with Cancer in their lifetime, you should think very carefully about how you will keep up mortgage repayments if you find yourself out of work for a while. You don't want to your lender to repossess your property, for an affordable monthly premium, you could protect your mortgage in the event of such circumstances.
DOES MORTGAGE INSURANCE PAY OFF
YOUR HOUSE IF YOU DIE?
Rather than paying out a death benefit to your beneficiaries after you die as traditional life insurance does, mortgage life insurance only pays off a mortgage when the borrower dies as long as the loan still exists. This is a big benefit to your heirs if you die and leave behind a balance on your mortgage.