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UK Life Insurance Information

Guide _________________Quotes

Like many personal finance "products" there are different names for what are essentially the same thing.

The following list refers to the most common terms for personal insurance.

Click on the links to access the guide to each subject.

Life Insurance

Critical Illness Insurance

Long Term Income Protection

Mortgage Payment Protection Insurance
AKA Accident, Sickness and Unemployment

Mortgage / Life Protection

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Life / Mortgage Cover

When you buy a mortgage, you should get insurance to cover both your payments and your home.

There are two main types:

Mortgage Payment Protection - in case you lose your job or become sick. This isalso known as Accident, Sickness and Unemployment insurance. Read more about this now

Mortgage Life Protection This type of cover insures your mortgage in case you die. The idea is that your family won't have to lose the home aswell because they can't afford the mortgage payments.

It's considered to be a cheaper form of cover than straightforward life insurance. Read more about this now

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Mortgage Payment Protection Insurance

aka Accident, Sickness and Unemployment Insurance

Basics

Watch out for...

Cost

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Basics

Not long ago the state would provide a lot of support if you lost your job and couldn't afford your mortgage payments but that's changed.

Anyone who has taken out a mortgage since 1st October 1995 is now only eligible for state help nine months after becoming disabled or unemployed.

Any state assistance is means-tested and only covers the interest payments i.e. not endowment payments or capital repayments.


If your mortgage is for more than 100,000 you won't get any help at all.

What you need to cover you is Mortgage Payment Protection Insurance.

It's a major concern that only one in five mortgage payers has this type of policy.


What you're looking for is;

  1. When do the payments start - usually after an "excess" of 30 to 60 days.

  2. How long do they last for - usually only for 12 months but sometimes 24 months.

    If you want to insure your self against long term illness you need to look at Long Term Income Protection



Cost

An average cost of a Mortgage Payment Protection policy would be around 4.50 a month for every 100 you'd get a month.

(For example if you had paid £45 a month you'd expect an insurance payment of £1000 a month).

This would only be for a 12 month payout period. A two year payout policy would cost approx £7 for every 100 of monthly payments.

The payments would start after an "excess" of 30 days (i.e. it would start being paid after 30 days).

Whatever the price, you would have to make sure that it would cover what you'd need.



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You'd normally get this from your mortgage provider. The problem is that the policy they offer you is unlikely to be the best value you could find - in terms of cover provided and cost. Over the term of your mortgage this can amount to many thousands of pounds wasted.

There are literally hundreds of UK insurance brokers out there waiting to give you a better quote for your Mortgage Payment Protection insurance. The problem is they vary greatly in price and quality.

The best thing is to have one recommended by word of mouth.

However if you can't find one this way, we've done some researching and have identified the ones we believe offer the best value.

Go to the best quote


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Mortgage Life Protection

aka Mortgage Protection
Decreasing Term Assurance

Outline

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Outline

This is another type of life insurance. It works by paying off your mortgage in the event of your death so that your family are at least safe in your home. (Otherwise if they can't afford the mortgage payments they'd have to sell up).

Because what you owe on the mortgage gets less and less as time goes on (ie as you pay more and more of your mortgage off) so does the amount of cover provided. This means the premium you have to pay every month also reduces in turn.

Mortgage Protection Decreasing Term Assurance is considered to be a cheaper form of cover than straightforward life insurance.

 

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There are literally hundreds of UK insurance brokers out there waiting to give you a better quote for your Mortgage / Life Insurance. The problem is they vary greatly in price and quality.

The best thing is to have one recommended by word of mouth.

However if you can't find one this way, we've done some researching and have identified the ones we believe offer the best value.

Go to the best quote


Back to insurance guide list or

Main contents