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Home : Insurance : Life Insurance : Mortgage Protection Life Insurance :

Mortgage Protection Life Insurance

Protection for your family home

Mortgage Protection Life Insurance is designed to repay the outstanding balance on your mortgage if you die during the period of cover. The amount of cover decreases in line with the outstanding balance on a standard repayment mortgage.

The monthly premium you pay for your mortgage protection policy is guaranteed for the policy term, provided premiums are paid in full.

Mortgage protection life insurance key features

• You choose the amount of cover you want and how long you would like the policy to run for.
• The amount of cover reduces each month during the policy term and is calculated to be enough to equal the capital outstanding under a normal repayment mortgage.
• If you die during the policy term your insurer will pay the calculated amount of cover at that time.
• If you set up a joint policy (one policy to cover two people) the amount of cover is paid out if either person dies.
• The policy usually stops when a claim has been paid.
• This policy has no cash in value at any time.

Terminal illness cover

This policy benefit is included with all AA Life Insurance policies at no extra cost. Terminal illness cover pays out the amount you are covered for if you are diagnosed as being terminally ill with a life expectancy of less than 12 months. Terminal illness cover does not usually apply during the last 12-18 months of the period of cover.

Critical illness cover

We also offer a policy which combines Mortgage Protection Life Insurance with critical illness cover.

Waiver of premium

This policy option allows you to protect your monthly premium if you are unable to work following an accident or illness. If you are unable to work six months after having an accident or becoming ill, your insurer will pay your monthly premium until you are fit to return to work.