What is Mortgage Protection?
Mortgage Protection is an insurance policy which provides protection benefits in a lump sum and / or monthly income in one package to help you manage your mortgage commitments should the unthinkable happen, such as your death, disability or involuntary unemployment. It is designed to assist you to pay out your mortgage.
Sometimes this can be confused with “Mortgage Insurance” which is usually taken out by your bank to protect the bank should you default on your loan. Whilst the premium is paid by you (usually included in your mortgage) it will only pay out the bank. The insurer will then seek payment from you.
Mortgage Protection policy has been designed to protect you in limited situations.