Mortgage protection is a really useful product but as is the case with many types of insurance, there are some common misconceptions that might confuse or deter potential customers.
At Gallivan Financial we want to make sure that you have all the necessary information before making a decision, so here are some basic truths and untruths related to mortgage protection.
1. You don’t need to take out mortgage protection with your mortgage provider. You may be under the impression that taking out mortgage protection with your lender is best practice, or even mandatory. This is not the case. While your provider is likely to offer you protection, you still have every right to shop around and find a better deal elsewhere. At Gallivan Financial we are committed finding the right option for you, regardless of who your provider may be.
2. Switching mortgage protection providers is easier than you think. Many people are put off switching mortgage insurance providers as they think it’s too much hassle. Others might not be aware that it’s even allowed. The reality is that you can change providers if you so wish and depending on your circumstances, you might be able to find a cheaper alternative. Oftentimes the biggest inconvenience is shopping around but the team at Gallivan Financial will gladly take care of that.
3. Mortgage protection and life insurance are not the same thing. Although they are similar in certain ways, mortgage protection provides a different type of cover to life insurance. Mortgage protection will help your loved ones to pay off your mortgage in the event of your death. Life insurance pays out a lump sum in the event of your death to cover the loss of income to your family.
4. If your partner dies you will not receive the total cost of your mortgage. As your mortgage decreases over time, so too will your mortgage protection premium. If your partner dies you will receive only this amount, which will be enough to cover the rest of your mortgage.
If you have any further questions about mortgage protection or would like to find out more about the wide range of financial services we can offer, give us a shout today on 064 66 37393. We’ll be delighted to hear from you.