Mortgage Protection

Frequently asked questions

• If I die, who is the benefit paid to?

  If your policy is required by your lender to repay your mortgage, it will be paid directly to your lender.

  If the amount of cover is greater than the balance due on the mortgage, the remainder will be paid to your estate.

  If the amount of cover is less than the balance due on the mortgage, the remainder will be owed to the lender by your estate.

  If you have a dual policy, the cover is payable to the estate on the death of the second life whilst the policy is in force.

• Can I use an existing life insurance policy to cover a new mortgage?

  You can use an existing life insurance policy if:

  • It is not in place to cover another loan or mortgage.
  • The amount you’re insured for is at least equal to the term and amount of your mortgage.

• Can I change my mortgage protection policy if I change my mortgage?

  If you increase the amount of your mortgage or extend the term, you can look to change the existing policy.

  Please note: Any change to an existing policy is subject to underwriting and policy limits.
  

• Who is covered by my mortgage protection policy?

  Your mortgage protection policy pays out on the death of the person(s) named on the policy.

  When applying, you can cover:

  • A single life (if the mortgage is in one name).
  • Two lives (if the mortgage is in two names).

  Please note: If covering two lives, the policy will pay out when the first of the two named individuals pass away. If it is a joint policy, the policy will end at that point. If it is a dual policy the policy will end when both named individuals pass away.