How Mortgage Insurance Can Protect Your Family Home

1
How mortgage insurance can protect your family
home

• Most families rely on at least one regular
  monthly salary to cover their household debt. How
  would your household cope financially if you lost
  a source of income and werent able to make your
  mortgage repayments?

2
About Mortgage insurance in Woodstock.

• Mortgage insurance Woodstock is typically bought
  to cover a repayment mortgage, so in the event of
  your death your loved ones can pay off your
  outstanding mortgage.
• Its also called decreasing term life insurance.
  This is because the amount you are covered for
  decreases over the term of your policy, like the
  way a repayment mortgage decreases.

3
How does mortgage life insurance Woodstock work?

• You choose a payout amount and a policy term that
  matches that of your mortgage or loan. This way
  your insurance matches your loan commitment. So
  each month your cover decreases, roughly in line
  with the debt you're repaying.
• As both your mortgage loan and policy end at the
  same time, your mortgage life insurance Woodstock
  will reach zero by the end of the term. You're
  covered only for as long as the policy runs
  once the term ends, the cover ends.

4
Why you might want it

• A loss of income could mean financial hardship
  for your loved ones, and potential loss of the
  family home if they struggle to make the mortgage
  repayments. This is where mortgage life insurance
  Woodstock can help it can provide a payout that
  can be used to repay the mortgage if you die
  before it's paid off. So your family home is
  protected.
• If you die without mortgage cover and your estate
  is unable to pay off your mortgage debt, your
  home might be repossessed and sold by your
  mortgage provider to recover the debt.
• How much over should I get for mortgage life
  insurance Woodstock and for how long?
• This depends on your personal circumstances and
  your provider, as policies differ between
  insurers. The most important thing is making sure
  that you take out enough to cover your mortgage.
  For example, if youve got a 20-year mortgage for
  400,000 and you take out mortgage life cover for
  300,000, youll be at risk of underinsuring your
  mortgage. Which means your loved ones will be
  left with a shortfall to cover the outstanding
  mortgage debt.

5
How much does mortgage life insurance Woodstock
cost?

• This depends on your personal circumstances and
  your provider. You may want to use an independent
  financial adviser to help you find the best
  mortgage protection for you.

6
Can I put mortgage insurance Woodstock in a trust
for my family?

• If your policy is placed in a trust, typically,
  your provider will take instructions from, and
  pay claims for death to the trustees, who then
  decide what to do with the funds. In most cases,
  this is to pay out the beneficiaries. It means
  that the payout wont be subject to Inheritance
  Tax. It also means payment to your beneficiaries
  will probably be quicker, as the money will not
  go through the probate process. Instead, the
  insurer can start to arrange the payout once
  theyve received the death certificate and any
  other required documents