Do I Need Mortgage Protection Insurance?

The primary purpose of mortgage protection insurance is to pay off your mortgage if you die within the mortgage term. It helps you to ensure that your family can continue to live in your home without fretting over the financial burden of mortgage payments that you would normally cover.

As is often the case with insurance and protection, a mortgage protection plan is certainly worth it in the event you need it. Of course, no one expects to need it and the hope is that you won’t. Unfortunately, this isn’t always the case so it’s best to have something in place to protect your family in the event something happens. This is especially true if you’re the main contributor to the mortgage payments and/or you have family members that rely on you and live in your property, as MPI ensures that your family won't face the risk of losing their home if you can no longer make mortgage payments.

By covering your mortgage in critical situations, MPI provides a safety net that prevents financial hardship and allows your family to maintain their quality of life.

Learn more about scenarios in which you should definitely consider mortgage protection insurance below.

You don’t need mortgage protection insurance to get a mortgage. It’s not necessary to qualify for a mortgage but it can prove invaluable should you be unable to meet your mortgage obligations.

Deciding whether you specifically need mortgage insurance depends on your individual circumstances and financial situation. Nonetheless, some people have riskier jobs and some people’s families are more at risk of not meeting their mortgage payments than others in the event something unforeseen happens.

Here are some examples of when you might need to consider mortgage protection insurance:

• You’re the main breadwinner or a single income household and contribute the most towards the mortgage payments
• You have a family that live in and would want to remain in your home if something were to happen to you
• You have other members of your household that would not be able to take up responsibility of the mortgage payments due to age, employment, health, or something else
• You have an active job or one that comes with a higher risk of injury – e.g. you work in construction, farmworker, machine operator, police officer, firefighter, etc.
• You have limited savings that could not cover your mortgage payments
• You have a large mortgage which can make maintaining payments during difficult times even more challenging for your family

• Offers financial security as your mortgage payments will be taken care of
• Grants peace of mind as you don’t have to worry about what could happen to your family and home if you die
• Provides protection for your family in the event that something happens to you
• Allows your family to retain ownership of the family home
• You’re prepared for the unexpected, making certain challenges less complicated and potentially easier to handle for your family
• Many mortgage protection insurance policies offer flexible coverage that can be tailored to various periods and amounts, depending on your specific needs

Selecting the right mortgage protection insurance plan involves assessing your specific needs, such as the amount of your mortgage, the term length, and whether you require additional coverage for certain risks pertaining to your job. It’s important to compare different policies and providers to find the best fit for your situation. Factors to consider include the terms and conditions of each policy, the reputation of the insurer, and the overall cost.

The simplest way to do all this is to speak to an expert mortgage protection broker like John Charcol.

At John Charcol, we understand the importance of protecting your home and your family's future. Our team of experienced brokers is here to help you navigate the complexities of mortgage protection insurance. We offer personalised advice, a wide range of policy options, and expert guidance to ensure you find the best coverage for your needs.

Our brokers will work with you to understand your unique circumstances and provide tailored advice. We partner with various insurers, giving you access to competitive rates and comprehensive coverage. Our support doesn’t end once you’ve secured your policy - we continue to provide ongoing assistance to ensure your coverage remains aligned with your needs.

Contact John Charcol today on 0333 363 6507.