What is Mortgage Cover?
Mortgage Cover (also known as Mortgage Protection Insurance) is a type of Income Protection that will cover your mortgage payments if you’re out of work due to accident, sickness, or unemployment. Mortgage cover is a simple way of ensuring that your home is protected, even when you’re not around.
The difference between Life Insurance and Mortgage Cover Protection is that Life Insurance refers to the type of insurance that provides your family with a lump sum if you pass away. Whereas a Mortgage Cover Protection policy is a type of policy that is there to pay the mortgage payments to your mortgage lender if something was to happen to you during your mortgage term.
Do I need Mortgage Cover?
If being out of work would make it difficult for you to meet your mortgage repayments, or if you’re self-employed and not eligible for sickness or redundancy pay, then Mortgage Cover might be for you.
Mortgage Cover, acts as a safeguard if you can no longer afford your monthly repayments. Ultimately, it could save you from defaulting on your mortgage and losing your home completely.
Alternatively, you might want to explore other types of protection. For example:
