Mortgage Protection
- Provides reducing cover over the term of the mortgage
- A fixed premium, at outset, to provide lump sum, which will clear outstanding loan.
- Specific to original terms of loan, not flexible if loan or duration increase
- Lender, generally, takes an assignment which allows them clear loan on claim
Often, a Mortgage Protection Plan is taken out at the time of getting the mortgage and is not high on the order of priorities of the borrower. The Premium Rates for these policies have reduced in recent years (subject to normal underwriting). If your policy is more than 5 years old, it may be worth getting a quote which might save you a considerable amount over the life of the mortgage.