Mortgage protection update
A number of recent developments in this market have added flexibility to this life insurance product.
- Free dual pay out on mortgage protection through Royal London. For example in the event of a tragedy ( both parties being killed in an accident ) the balance on the mortgage is cleared and a second cheque for an equivalent amount, is paid to the estate of the second policy holder.
- This feature also allows a surviving spouse to continue to pay the mortgage protection policy on a single life basis, thereby giving a degree of life insurance cover at the price when the cover was arranged.
- Another feature is convertible mortgage protection which costs an extra 5% through Royal London. This allows a policy holder to switch their mortgage protection policy to a term life insurance policy. In term life insurance policies, the amount insured does not change during the term, unlike a mortgage protection policy where the cover reduces in line with the mortgage balance.