Mortgage Protection Policy
mortgage glossary
A Mortgage protection policy is a life insurance policy with a decreasing sum assured designed repay your mortgage if you die during the term.
Put another way, if your were to die, the lender would like to know that you have an insurance policy in place which could be used to pay off your mortgage debt. This is very sensible for you, if you're leaving a partner or family behind who want to continue living in the property but perhaps wont be in a position to afford the mortgage repayments without you.
You will not need a separate insurance policy with an endowment mortgage, as the life cover already is built in.
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