Staffordshire Independent Financial Advisers LLP

Mortgage Protection

Mortgage Protection is a kind of Term Assurance specifically designed to repay, on death, during the term, the amount outstanding on a 'capital and interest' repayment mortgage. In other words, if the policyholder(s) die prematurely, the outstanding loan amount on the mortgage will be repaid in full.

Some policies have rider benefits, which are extra sorts of cover, added on to the principal life cover. Such benefits include:

• Waiver of premium benefit - the premiums are in effect paid for you in the event of defined incapacity due to illness
• Income protection benefit - a percentage of your income is paid to you if you cannot work at your usual employment
• Unemployment benefit - a variety of income protection benefit
• Critical illness cover - the benefit is paid before death on the diagnosis of life shortening disease (e.g. cancer). This benefit may replace the death benefit, or it may be paid as well

All these riders cost extra and are only paid subject to meeting tight criteria.

Mortgage Protection

Mortgage Protection (also known as 'Decreasing Term Assurance') is a kind of Term Assurance specifically designed to repay, on death, during the term, the amount outstanding on a 'capital and interest' repayment mortgage. In other words, if the policyholder(s) die prematurely, the outstanding loan amount on the mortgage will be repaid in full. Please be aware that such policies usually have a maximum interest rate and if the mortgage interest rate is higher than this figure for a sustained period of time, the sum assured may not be sufficient to repay the whole of the loan.

Some policies have rider benefits, which are extra sorts of cover, added on to the principal life cover. Such benefits include:

• Waiver of premium benefit - the premiums are in effect paid for you in the event of defined incapacity due to illness
  
  
• Income protection benefit - a percentage of your income is paid to you if you cannot work at your usual employment
  
  
• Unemployment benefit - a variety of income protection benefit
  
  
• Critical illness cover - the benefit is paid before death on the diagnosis of life shortening disease (e.g. cancer). This benefit may replace the death benefit, or it may be paid as well
  

All these riders cost extra and are only paid subject to meeting tight criteria.

Call us now on 0800 389 2276 for independent advice on any of these areas. Alternatively, just send us an Enquiry and we will call you back.