When it comes to financial protection, it’s important to understand the differences between various types of insurance policies. Two policies that are often compared are Mortgage Protection and Family Life Cover. While both policies offer protection for your loved ones in the event of your death, they differ in terms of their focus and coverage.
Mortgage Protection is an insurance policy that is designed to pay off your mortgage in the event of your death or terminal illness. The policy is typically set up to pay out a lump sum if you pass away, which can be used to pay off your mortgage balance or continue making mortgage payments on your behalf. This type of policy is often required by lenders as a condition of the mortgage.
The policy amount is usually set to match your mortgage amount and decreases over time in line with the decreasing mortgage balance. This type of insurance policy is focused on providing financial security for your family and ensuring that they can continue to live in the family home, without the burden of mortgage payments.
Family Life Cover, on the other hand, is a more comprehensive type of life insurance policy that provides a lump sum payment to your beneficiaries in the event of your death. This policy is designed to provide financial protection to your loved ones, covering everything from funeral costs to ongoing living expenses.
The policy amount is typically based on your desired level of coverage, and it does not decrease over time. This type of policy is focused on providing financial security for your family in the event of your death, and it can be used to cover a wide range of expenses that your family may face after you pass away.
The main difference between Mortgage Protection and Family Life Cover is their focus and coverage. Mortgage Protection is designed specifically to pay of your mortgage balance, while Family Life Cover is a more comprehensive type of policy that covers a wider range of expenses.
Mortgage Protection policies are typically required by lenders and are focused on ensuring that your family can continue to live in the family home after the death of one of the home owners. Family Life Cover, on the other hand, is focused on providing financial security to your family as a whole, covering a wide range of expenses that they may face after you pass away.
In terms of coverage, Mortgage Protection policies usually provide a decreasing benefit over time that matches your decreasing mortgage balance, while Family Life Cover provides a fixed benefit amount that does not decrease over time.
Which One is Right for You?
The decision between Mortgage Protection and Family Life Cover ultimately comes down to your individual needs and financial situation. If you are primarily concerned with ensuring that your family can continue to live in the family home, then Mortgage Protection may be the right choice for you. However, if you want more comprehensive coverage that provides financial security for your family as a whole, then Family Life Cover may be a better fit.
It’s important to consider factors such as your age, health, and financial situation when deciding which type of insurance policy to choose. It’s also a good idea to consult with a financial advisor like LowCostLifeCover.ie who can help you navigate the various options and determine which policy is right for you.
In conclusion, both Mortgage Protection and Family Life Cover are important types of insurance policies that offer valuable protection for your loved ones in the event of your death. Understanding the differences between these policies can help you make an informed decision about which type of policy is right for your needs.
Low Cost Life Cover is an independent broker with agencies with all the major insurners Zurich, Royal London Ireland, Irish Life, Aviva and New Ireland. It is our job to provide you with the best independent advice that is the most suitable for your needs. I would be happy to discuss your individual needs if you have any questions give me a call 01 6853818, I’m from Donegal I love to talk!