Question

I have a joint mortgage with my wife and a friend suggested that I take out joint mortgage life assurance but what exactly is a joint policy and how does it work?

Answer 1

Firstly, mortgage life cover is designed to repay your mortgage loan should you pass away within the policy term. 

Decreasing term plans (where the amount of cover declines over time) are usually taken out to cover a repayment mortgage and level term plans (where the amount of cover is fixed over time) are usually taken out to cover an interest only loan.

 

With joint mortgage life insurance the policy is written on joint names/lives. This means that if either partner named on the plan were to pass away within the policy term the plan would payout. This type of cover is therefore very popular with couples taking out a joint mortgage. 

 

It is important to note that with joint life insurance the plan would only payout once upon the death of the first partner and then the policy would terminate. 

 

For more information please see the page: Joint Mortgage Life Insurance - Guide

This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 020 8432 7333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.