I want to make sure that my mortgage is paid off if I die or become very seriously ill. What kind of insurance do I need?

There are two separate elements that you need. You’ll need Life Insurance to provide a lump sum large enough to pay off your mortgage if you were to die. You’ll find that you can add the Critical Illness cover to the same policy, which will pay out if you have a serious illness and are unable work.

The kind of Life Insurance you need will depend on the kind of mortgage you have. If you have a repayment mortgage you should take out Mortgage Life Insurance. If you have an interest only mortgage you should take out standard, level cover Life Insurance.

Then you need to add Critical Illness Insurance. You can do all this as a combined policy, which you’ll find is much cheaper than having two separate policies. However, you should realise that Critical Illness Insurance is relatively expensive, because of the risks involved.

The following related questions explain what this means in a lot more detail.

Please note : The information contained within the FAQ section has been written by Mortgage Protected Online

Related questions:

Why would I want Mortgage Life Insurance?

What’s the difference between Mortgage Life Insurance and normal Life Insurance?

Should I consider normal Life Insurance to cover my mortgage?

What if I add Critical Illness cover?

Can I include Critical Illness Insurance in my Life Insurance Policy?