What is a Whole of Life Mortgage Protection Policy?
A whole of life mortgage protection policy is a type of life insurance, that is designed to pay out a lump sum in the event of the policy holder passing away, or being diagnosed with a terminal illness. It is worth noting that a terminal illness is usually defined with insurers as an illness that means you will not live past 12 months.
A whole of life policy will usually last as it states, for your whole life, whereas most standard life insurance policies will last for a defined period of time, sometimes for the length of your mortgage or until your children are no longer dependent.
More about life insurance policies
Life insurance can be used as a general policy for financial protection, as well as a way to protect your mortgage payments in the event of the death of the policy holder.
Options include either a ‘decreasing’ policy (the cover ‘decreases’ each month roughly in line with a
repayment mortgage) or a ‘level’ policy (the cover is set at an amount, and remains at that amount for the
duration of the policy.
Other options can be discussed, such as ‘reviewable’ policies.
Policies can also be placed in ‘trust’, which are designed to outline any beneficiaries of the policy (should the policy holder wish to specify any). We can discuss this with you and provide more details to see if this is right for you.
Trusts are not regulated by the Financial Conduct Authority.
Frequently Asked Questions
Do I have to have life insurance?
It is certainly worth while to have life insurance and some mortgage lenders may insist upon this when making a mortgage offer
How much will it cost?
We will provide you with a quotation based on your needs. This will be based on your age, health, amount of your mortgage, and the amount of cover you need.
Can you arrange this for me?
Yes absolutely! We are qualified and regulated, and experienced in the provision of protection products including mortgage life cover. Just call us to discuss the details.
We can help you to understand more about how Whole of Life Protection Policies works and if it’s right for you – contact us today to arrange an appointment!
