Best Mortgage Insurance Protection Package

Mortgage protection is a kind of insurance that will protect the mortgage holder – not the lender – in case of being unable to meet the repayments of the mortgage for reasons such as sickness or injury. Depending on the policy it will pay the mortgage for up to five or ten years, or right up into the mortgage holder turns 65 and retires. Mortgage protection insurance is often called simplified life insurance; however, it differs from life insurance in that it pays the mortgage and nothing else. And it pays while you are still alive, while life insurance actually only pays if you pass away.

Rather than getting mortgage protection insurance on its own, many people prefer to get a package that includes other kinds of insurance such as term life insurance and total permanent disability insurance. There are two kinds of the latter type of insurance and they are cover for your own occupation only or for any occupation.

Another option is even more comprehensive and includes term life insurance, total permanent disability insurance with either of the two above options, and income protection insurance. The latter is limited to your maximum mortgage payment, rather than a percentage of your income.

When applying for such mortgage protection packages, most insurers require you to be between the ages of 20 and 59 and have a mortgage. In a few cases the insurers will only offer such a package if you have taken out the mortgage or refinanced in the last 90 days. Once you have this kind of insurance it will remain in place while ever the premiums are maintained. However, you can cancel it at any time if you desire to do so. It is possible that in later life when your financial position is more secure and there is not much left to pay on the mortgage, you may wish to do this.