Mortgage Protection Insurance

Kalada

Registered User
Messages
30
Hi,

Which company do you recommend for mortgage protection insurance?

Do I need life or mortgage insurance? Or both? What's the difference?

Thanks
 
If you have a mortgage, you must have MPP.

It insures the bank, as the debt is repaid if you die.
 
MPP pays off the outstanding amount of the mortgage if you / your partner (or both) die. The value of the policy decreases as the amount owed on the mortgage does but the premium is constant throughout. Anyone left behind will not receive a lump sum but will be mortgage free.

Life insurance pays out a fixed amount in the event of your death so anyone left behind will receive a lump sum.

You need MPP as a minimum if you have a mortgage. Life insurance is a personal preference. Many company pension schemes include death in service benefits which dilutes many arguments for life insurance.

In our own case, we opted to go for MPP and then also took out income protection insurance. This pays you out a monthly sum in the event you are unavailable for work due to illness or injury.
 
Back
Top