Protecting your home and mortgage in the event of your death or diagnosis of a critical illness.
family protection policies
Mortgage protection is designed to help ensure your mortgage can still be paid if you die or become seriously ill. It provides peace of mind that your home is protected, whatever life throws your way.
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Mortgage protection is insurance designed to repay your mortgage if you pass away or are diagnosed with a serious illness during the term of your loan.
It typically pays out a lump sum that can be used to clear your outstanding balance, helping your family stay in their home without financial pressure.
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Mortgage protection pays out a lump sum if you die or are diagnosed with a covered serious illness during the policy term.
The cover can be set up to reduce in line with your mortgage, so it mirrors what you owe, or stay level depending on your needs.
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Your mortgage is not only most peoples most valuable asset, it’s your home. If you were to pass away or be diagnoses with a serious illness, having the peace of mind that you don’t need to worry about your mortgage means you can concentrate on dealing with the important stuff.
These policies are designed to mirror your mortgage, both in amount and duration. Getting the structure right helps ensure the policy does what it’s intended to do, without unnecessary cost or complexity.
The level of cover is usually aligned to your outstanding mortgage balance, as mortgage protection insurance is designed to help clear your mortgage in the event of a claim. In some cases, cover can also include critical illness cover, providing a lump sum if you’re diagnosed with a specified serious condition during the policy term.
Mortgage protection insurance can be arranged as either decreasing or level cover, depending on how your mortgage is set up. Decreasing cover is commonly used for repayment mortgages, as the policy amount reduces over time broadly in line with your outstanding mortgage balance.
For interest-only mortgages, level cover is usually more appropriate, as the mortgage balance does not reduce. Decreasing policies typically reduce by a set percentage each year, allowing for interest rate changes and helping ensure there is sufficient cover to clear the mortgage in the event of a claim.
The policy term is usually set to match the length of your mortgage, as mortgage protection is designed to run alongside it. This helps ensure cover remains in place for the full mortgage term, with the level of cover reducing broadly in line with your mortgage being repaid.
While a partner may be able to cover mortgage payments, household income is often significantly affected following a serious illness or death. Additional costs such as childcare or reduced working hours can also arise. Mortgage protection insurance can help reduce financial pressure, allowing your family time to focus on what matters rather than immediate financial concerns.
Some employers provide life or death-in-service benefits, but these are usually linked to your employment and can change if you move jobs or stop working. Workplace cover also isn’t tailored to your mortgage term or balance, meaning it may not provide the right level of protection to clear your mortgage if circumstances change.
Selling the home may seem like an option, but it can be disruptive — particularly where family stability, schooling, or location are important. Mortgage protection can help provide options, reducing the need to make immediate decisions during an already difficult time.
Mortgage protection is often more affordable than expected, particularly where cover reduces in line with your mortgage balance. Because the amount insured typically decreases over time, premiums are often lower compared to other types of life insurance, subject to application and health disclosures.
Why Choose ME
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Often people may just take a policy via a comparison site or directly from the provider without thinking about the type of cover they need. We give full, comprehensive mortgage protection advice you can rely on so you can sleep well at night.
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We explain how mortgage protection works in plain English. This is so you understand exactly what you’re paying for and when it would pay out. No pressure, no confusion, no surprises later
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At ME Financial, we understand that peoples circumstances change. Whether you are moving home, increasing your mortgage or have simply had a change in circumstances, we understand these changes and can advise you accordingly.
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No obligation, no jargon. Just clear, honest advice from an experienced adviser who puts you first.
Common Question
Understanding mortgage protection can feel overwhelming at first. These FAQs cover some of the most common questions we’re asked, helping you understand how mortgage protection works, what it can cover, and what to think about before putting a policy in place.
Mortgage protection is a type of insurance designed to help protect your mortgage payments or clear some or all of the mortgage balance if something unexpected happens, such as death, serious illness, or loss of income depending on the type of cover chosen.
Not exactly. Life insurance is often used as part of mortgage protection, but mortgage protection can also include things like critical illness cover or income protection. It really depends on what risks you want to protect against.
It’s not always compulsory, but it is something many homeowners choose to put in place for peace of mind. If you have a mortgage, dependants, shared financial commitments, or would struggle if income stopped, it’s worth considering.
Yes, many self-employed people can still get mortgage protection. In fact, it can be even more important if you don’t have sick pay or death-in-service benefits through an employer.
Decreasing cover is often used for repayment mortgages because the amount of cover reduces over time, roughly in line with the mortgage balance.
Level cover stays the same throughout the policy term and may be more suitable in other situations, such as interest-only mortgages or where extra family protection is needed.
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