Mortgage Protection

Mortgage Protection Insurance is a simplified type of life insurance product that can be purchased if you have a mortgage and is designed to cover you, not the bank. In essence, mortgage protection helps you cover your mortgage repayments and minimises the financial hardship for you or your family.

Mortgage Protection Insurance will cover mortgages on any residential and commercial properties owned by individuals as their primary home, or as an investment property. Individuals may effect Mortgage protection in their own name or in the name of their company.

There are many different levels and types of mortgage protection offered however in our experience we have found two fundamental types:
mortgage protection insurance

The first type of Mortgage Protection is the most common type of cover and includes:

The second type of Mortgage Protection cover includes:

  • Term Life Insurance, &
  • TPD Insurance (Either Own Occupation or Any Occupation definition is available)
  • Income protection (Which is limited to the maximum mortgage repayment)

Remember Mortgage Protection Insurance is there to protect you & your family and not the mortgage provider.

Do I need Mortgage Protection Insurance?

It makes good sense for Mortgage Protection to form part of your financial plan. Finding the best Mortgage Protection for your situation is all about making sure that if something happens to you, your spouse or your loved ones assets and interests are protected.
mortgage protection insurance

Who is eligible for Mortgage Protection?

Here again it depends on the provider however you are most likely eligible if you are aged between 20 and 59 years of age and have a current home or commercial mortgage. You can take this out at any time so long as you still have a mortgage owing on the property; however there are a few mortgage protection providers which will only let you enter into the policy if you have taken out or refinanced your mortgage within the last 90 days.

How long will I be covered for?

Depending on the provider Mortgage Protection provides cover for, five years, ten years or up till your mortgage is settled. This cover will remain in place so long as you continue to meet your premium obligations which will either be payable upfront on a yearly basis or on a monthly basis. However you are not locked into this term you can cancel the policy during this time.

Find the best mortgage protection policy to suit you

If you have a mortgage on a residential or commercial property, contact xLife or request mortgage protection quotes.

September 2010