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Mortgage Insurance

Mortgage Insurance FAQs

What is Mortgage Repayment Cover?

Mortgage Repayment Cover is a monthly payment made to you in the event that you're off work due to serious illness or injury. It is designed to cover your mortgage repayments with your lender, so you can have peace of mind that you can stay in your own home in the event that the unexpected happens.

Can I insure more than my mortgage balance?

Yes. You can insure any sum you'd like (45% of Income or 110%/115% of repayments) depending on the insurer you choose. This could be just to cover your mortgage, or you can add other cover - for example to take care of other debt or to provide a replacement income for family.

How long do Repayment Cover claim payments last?

The usual choices are 2 years, 5 years, until age 65, or until age 70. Choosing a payment period of 5 years means that you'd receive claim payments for a maximum of 5 years. If you choose a "till age 65" payment period, your payments would continue until you reach age 65 (as long as you're still eligible to claim until that time).

What's a Wait Period?

Your Repayment Cover claim payments won't start until after your Wait Period. You choose the waiting period (though there is often a minimum of a month). The waiting period that's right for you depends on your situation and how long you could realistically get by without an income (for example do you have savings or an emergency fund you could use to tide you over?).

What if my mortgage repayments change?

If your repayments change, it's important to revisit the amount you have insured - Repayment Cover will not necessarily increase automatically, you need to request this.

Are there any exclusions on the policy?

Yes. These vary depending on the plan, however a typical list of exclusions might include self-inflicted harm, criminal activity, pregnancy or complications thereof lasting fewer than 90 days after the birth.

What are my payment options?

The most common payment options are Direct Debit or Credit/Debit Card, and these are the two options available through our website. However, with some insurers there are other methods available (e.g. annual cheque), so please let us know when you apply if you'd like to choose a different option.

When will I make my first premium payment?

Not until after your application has been assessed and accepted. If you choose to pay monthly (by Direct Debit or Credit/Debit Card) then you can usually select the day of the month that you'd like you premiums to come out.

What happens if I stop paying my premiums?

If you stop paying premiums, after a period of time (usually three months) your cover will end. If you ever need to change your payment details (e.g. you change bank accounts) just contact us and we'll get it sorted.

What happens if I need to claim?

LifeDirect is here to help. If you think a claim might be needed, please contact us straight away. We will then contact your insurer and get the claims process underway.

Will the Covid-19 pandemic affect my insurance?

For new insurance applications, there are no Covid-19 vaccination related exclusions placed on policies with any of the insurance companies we work with. If, in the future, insurers decide to apply Covid-19 vaccination exclusions to any of the policies offered, the information will be made available to you up front so you can make an informed decision.

If you have existing insurance cover, Covid-19 vaccinations will not have any impact on your policy. Your insurance terms were decided at the time you took out the cover and these cannot be changed.

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