Mortgage Protection

Do you have mortgage protection insurance on your home? It can be very important just in case anything does happen. You probably have a few questions about mortgage protection though. Why do you need it? Is it different from mortgage insurance?

Buying a home

Buying a new home is always exciting. So many things are thrown at you at once, and there are so many things to think about. Have you ever thought about protecting yourself and your finances just in case you are no longer able to make your monthly mortgage payment?

Differences between Mortgage Insurance and Mortgage Protection

The difference between mortgage protection and mortgage insurance is that mortgage insurance is only offered by a few companies. Mortgage insurance also only covers your minimum mortgage repayments if you are unable to work.

If you pay more than your minimum repayments each month, these companies under a mortgage insurance policy will still only pay your minimum repayments.

However, with mortgage protection, it is a more comprehensive option for people looking to cover their mortgage more completely. Mortgage protection is more of a combination of life insurance and income protection. The minimum life insurance amount suggested is the amount of the mortgage, which can be extremely beneficial of course.

Flexibility

Life insurance is flexible with the amount of coverage that you can take out you can alter your coverage to your own personal situation and see what fits you and/or your family the best overall.

If you do not need the full amount of the mortgage for whatever reason then there is no need to take out that amount, if you want more than the mortgage to support your family or pay off other debts then this is also an option with mortgage protection. Mortgage insurance does not offer this flexibility (and this is the different between the two) and you are required to take out the mortgage amount.

This can be a lifesaver for your family, just in case anything happens to you. The main difference between mortgage protection and mortgage insurance is flexibility, which mortgage insurance does not provide much of.

As both cover the same thing, mortgage protection offers you more flexibility then mortgage insurance and it also provides peace of mind just in case something does happen to you.

Do you have mortgage protection? Why or why not?

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