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Furnley House

  • Mortgage protection 


    ​for ultimate peace of mind

    If you are taking on a mortgage, its important to consider unplanned events that life throws at us. 

    Not things we like to think about, however if you don’t plan, you could end up being caught out.

    Get in touch today

What is mortgage protection insurance?

Mortgage protection insurance is designed to provide financial protection to homeowners in the event of specific circumstances that may affect their ability to make mortgage payments.


The purpose of mortgage protection insurance is to help homeowners maintain their mortgage payments, even if they face unexpected events such as unemployment, disability, or death. The specific coverage and terms of the policy can vary depending on the insurance provider and the policy itself, so it's important to carefully review the terms and conditions before purchasing.


Before purchasing mortgage protection insurance, it's advisable to assess your specific needs, evaluate the coverage provided, compare different policies and premiums, and understand any exclusions or limitations associated with the insurance. Consulting with a insurance professional can help you make an informed decision based on your individual circumstances.

How does mortgage protection insurance work?

Mortgage protection insurance safeguards homeowners by providing financial protection in case they face circumstances that affect their ability to make mortgage payments. Homeowners pay regular premiums to the insurance provider, and if a qualifying event occurs, such as job loss, disability, or critical illness as outlined in the policy, the homeowner can file a claim. 


If the claim is approved, the insurance company provides benefits, which may be in the form of monthly payments for a specified period or a lump sum payment to pay off the remaining mortgage balance in the event of the policyholder's death. It's important to carefully review the policy's terms, conditions, and exclusions before purchasing mortgage protection insurance to ensure it meets your specific needs.

You become liable for your whole mortgage amount on exchange of contracts. 

This means that, should anything awful happen prior to completion, 

you and your family could find yourself with an unwanted financial and legal burden.

Do you have a mortgage?

How to pay off your mortgage

Mortgage protection insurance offers several benefits to homeowners and solves a significant problem related to homeownership. Firstly, it provides a safety net during unexpected events that could disrupt a homeowner's ability to make mortgage payments, such as job loss, disability, or critical illness. By covering mortgage payments for a specified period or paying off the mortgage balance in the event of the policyholder's death, mortgage protection insurance safeguards homeowners from the financial strain that can arise from these circumstances. 


This insurance also addresses the problem of leaving family members burdened with mortgage debt in the event of the policyholder's death, ensuring that loved ones can maintain ownership of the home without the added stress of mortgage obligations. Mortgage protection insurance offers peace of mind, financial security, and protection for homeowners and their families when they need it most.

Please note: if premium payments are not maintained, the benefits of the plan will be put at risk. If premium payments cease altogether, the benefits of the plan will cease. The cover may be less than you need if you do not review it regularly.

Mortgage protection insurance provides several benefits to homeowners:

1. Financial Security

It offers a safety net by providing financial assistance to cover mortgage payments in the event of unexpected circumstances like job loss, disability, or critical illness. 

2. Peace of Mind

Having mortgage protection insurance provides peace of mind, knowing that there is a financial safety net in place to protect one's home and ensure continuity of mortgage payments in case of unforeseen events.

3. Protection for Loved Ones

In the unfortunate event of the homeowner's death, mortgage protection insurance can pay off the remaining mortgage balance. This ensures that surviving family members are not burdened with the mortgage debt, allowing them to remain in the home without financial strain.

4. Flexible Policies

Mortgage protection insurance policies often allow homeowners to tailor the coverage to their specific needs. They can choose the coverage amount, duration, and select the events they want to be covered for, providing flexibility to align with individual circumstances.

5. Financial Cushion

For homeowners with limited savings or emergency funds, mortgage protection insurance acts as a financial cushion. It helps ensure that mortgage payments can continue even during times of financial hardship caused by unexpected events.

6. No Medical Examination

Unlike some other types of insurance, mortgage protection insurance typically does not require a medical examination, making it more accessible for individuals with pre-existing health conditions.

7. Quick Payout

In the event of a claim, mortgage protection insurance often provides a quick payout, allowing homeowners to manage their financial obligations promptly and effectively.

8. Flexibility in Use

The benefits received from mortgage protection insurance can be used at the discretion of the homeowner. They can be used to cover mortgage payments entirely or partially, depending on the policy terms.

9. Tax-Free Benefits

In many cases, the benefits received from mortgage protection insurance are tax-free, offering additional financial relief to homeowners.

10. Simplified Application Process

Obtaining mortgage protection insurance usually involves a straightforward application process, requiring minimal paperwork and documentation.

It's important to note that the specific benefits and terms of mortgage protection insurance can vary depending on the policy and insurance provider. Therefore, it's recommended to thoroughly review the policy details and consult with an insurance professional to understand the specific benefits and coverage provided by a particular policy.

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It's a three stage process

1. Research & Comparison

The first step is to conduct research and compare different mortgage protection insurance policies offered by various insurance providers. This involves evaluating the coverage options, terms, premiums, waiting periods, and any exclusions or limitations associated with each policy. Gathering information and understanding the specifics of the policies will help you make an informed decision.

2. Application & Underwriting

Once you have chosen a suitable mortgage protection insurance policy, the next step is to complete the application process. This typically involves filling out an application form provided by the insurance provider. The application may require you to provide personal information, details about your mortgage, and possibly answer some health-related questions. Depending on the policy and the insurance provider's requirements, you may need to undergo underwriting, which may include a review of your medical history or other relevant information.

3. Policy Issuance & Payment 

After completing the application process and satisfying any underwriting requirements, if applicable, the insurance provider will review your application and, if approved, issue the mortgage protection insurance policy. You will receive the policy documents, which outline the coverage, terms, conditions, and premiums. At this stage, you will need to make the initial premium payment to activate the coverage. The premium payment frequency and method will depend on the policy and the insurance provider's terms.

It's important to note that the process and specific steps may vary depending on the insurance provider and policy. 

 

Working with a insurance professional can guide you through the process, help you understand the options available, and ensure that you complete each step accurately and efficiently.