Here are three important aspects to consider that might help you get the best policy for your needs:

1. You Don’t Have to Use Your Bank’s Policy

• Bank vs. Financial Broker: While your bank may arrange your mortgage and require you to have mortgage protection insurance, they do not have the right to insist that you take out this policy with them. You are free to explore other options in the market.
• Financial Broker Advantage: Banks typically offer policies from just one life assurance company. In contrast, a Financial Broker can access a range of policies from different insurers across the market. This means you have a better chance of finding a policy that is both cheaper and better suited to your needs.

2. Cover Doesn’t Have to Decrease with the Mortgage

• Traditional Policies: Most standard mortgage protection policies are designed to decrease in line with the outstanding mortgage balance. This means as you pay down your mortgage, the cover amount also decreases.
• Level Cover Option: You can choose to maintain a level amount of cover that does not decrease, even as your mortgage balance reduces. This option means that, in the event of your death, the policy will pay out an amount greater than the remaining mortgage balance, with any excess going to your estate. This provides additional financial support to your loved ones beyond just clearing the mortgage.

3. Explore Additional Benefits

• Enhanced Features: Policies available through a Financial Broker may offer additional features and benefits that go beyond those typically provided by bank-provided policies. These could include options such as critical illness cover, waiver of premium, or even accelerated benefits.
• Tailored Solutions: A Financial Broker can help you identify and access these benefits, ensuring that your policy aligns with your broader financial plan and personal circumstances.

Next Steps

To ensure you get the most suitable and cost-effective mortgage protection insurance:

1. Consult with a Financial Broker: They can help you navigate the various options available in the market, compare policies, and find the best fit for your needs.
2. Review Your Needs: Consider whether you want a decreasing cover or a level cover and whether you would benefit from any additional features or benefits.
3. Ensure Compliance: Verify that any policy you choose meets the requirements set by your bank for mortgage protection.

Securing the right mortgage protection insurance can provide peace of mind and financial security for your family. By exploring all available options and working with a knowledgeable Financial Broker, you can find a policy that offers both the protection you need and the value you deserve.