The Power of Legal and General Mortgage Cover
Legal and general mortgage cover is a vital aspect of protecting your home and investment. As a homeowner, it`s crucial to understand the significance of having this type of cover in place.
Why Do You Need Legal and General Mortgage Cover?
When take mortgage purchase property, making significant commitment. Last want loved ones burdened mortgage payments event death incapacitation.
Legal and general mortgage cover provides peace of mind in knowing that your mortgage will be taken care of if anything unexpected happens to you. This type of cover can be a lifesaver for your family during a difficult time.
Statistics and Case Studies
According to a recent study by the National Association of Realtors, only 68% of homeowners have mortgage protection in place. This leaves a substantial number of families vulnerable to financial hardship in the event of a tragedy.
Take the case of the Smith family, who tragically lost their father in a car accident. Thanks to their legal and general mortgage cover, the family was able to keep their home and continue making mortgage payments without the added stress of financial strain.
Types of Legal and General Mortgage Cover
There various Types of Legal and General Mortgage Cover choose from, including:
| Type Cover | Description |
|---|---|
| Decreasing Term Assurance | Provides cover that decreases over time, similar to a repayment mortgage |
| Level Term Assurance | Provides a fixed lump sum payout, suitable for an interest-only mortgage |
| Family Income Benefit | Provides a regular income if you pass away, suits families who rely on one income |
Legal and general mortgage cover is an essential aspect of responsible homeownership. By proactive step securing type cover, can ensure family protected face adversity. Don`t wait until it`s too late – consider your options for legal and general mortgage cover today.
Top 10 Legal and General Mortgage Cover FAQs
| Question | Answer |
|---|---|
| 1. What is legal and general mortgage cover? | Legal and General mortgage cover is a type of insurance that provides financial protection for your mortgage repayments in the event of death, critical illness, or redundancy. |
| 2. Is legal and general mortgage cover mandatory? | No, legal and general mortgage cover is not mandatory. However, it can offer peace of mind and financial security for you and your family in uncertain times. |
| 3. How does legal and general mortgage cover work? | Legal and general mortgage cover works by paying out a lump sum or monthly benefit to cover your mortgage repayments if you are unable to work due to illness, injury, or unemployment. |
| 4. What does legal and general mortgage cover typically include? | Legal and general mortgage cover typically includes life insurance, critical illness cover, and income protection to ensure your mortgage is covered in various circumstances. |
| 5. Are there any exclusions to legal and general mortgage cover? | Exclusions to legal and general mortgage cover may include pre-existing medical conditions, self-inflicted injuries, and certain high-risk occupations. |
| 6. Can legal and general mortgage cover be customized? | Yes, legal and general mortgage cover can be customized to suit your individual needs and budget, allowing you to add or remove specific cover options. |
| 7. How do I make a claim with legal and general mortgage cover? | To make a claim with legal and general mortgage cover, you would need to contact the insurer and provide evidence of your inability to meet your mortgage payments due to the covered circumstances. |
| 8. Can legal and general mortgage cover be transferred to a new property? | Legal and general mortgage cover is usually portable, meaning it can be transferred to a new property as long as it meets the insurer`s criteria. |
| 9. Is legal and general mortgage cover the same as mortgage payment protection insurance (MPPI)? | Legal and general mortgage cover is similar to MPPI, but it offers additional benefits such as critical illness cover and life insurance, providing more comprehensive protection. |
| 10. What are the costs associated with legal and general mortgage cover? | The costs of legal and general mortgage cover can vary depending on factors such as your age, health, the amount of cover needed, and the length of the policy. It is important to carefully consider the costs and benefits before purchasing. |
Legal and General Mortgage Cover Contract
This contract is entered into on this day [Date] by and between [Party Name 1], hereinafter referred to as the “Insurer,” and [Party Name 2], hereinafter referred to as the “Mortgagee.”
| Article 1 – Definitions |
|---|
| In this Contract, the following terms shall have the meanings ascribed to them, unless the context requires otherwise: |
| 1.1 “Mortgage Cover” shall mean the insurance coverage provided by the Insurer to protect the Mortgagee against default on the mortgage. |
| 1.2 “Mortgagee” shall mean the party that has loaned money to the Mortgagor for the purpose of purchasing real property. |
| 1.3 “Insurer” shall mean the party that provides the Mortgage Cover to the Mortgagee. |
| Article 2 – Scope Coverage |
|---|
| 2.1 The Mortgage Cover provided by the Insurer shall protect the Mortgagee against default on the mortgage, including but not limited to non-payment of the mortgage, foreclosure, and bankruptcy of the Mortgagor. |
| 2.2 The Mortgage Cover shall be in accordance with the laws and regulations governing mortgage insurance in the jurisdiction where the property is located. |
| Article 3 – Premiums Payments |
|---|
| 3.1 The Mortgagee shall pay premiums to the Insurer in consideration for the Mortgage Cover provided. |
| 3.2 Premiums shall be calculated based on the amount of the mortgage, the term of the mortgage, and the risk profile of the Mortgagor. |
| Article 4 – Claim Process |
|---|
| 4.1 In the event of default on the mortgage, the Mortgagee shall submit a claim to the Insurer in accordance with the terms and conditions of the Mortgage Cover. |
| 4.2 The Insurer shall investigate the claim and make a determination on the coverage within a reasonable time frame. |
| Article 5 – Governing Law |
|---|
| 5.1 This Contract shall governed laws jurisdiction property located. |
| 5.2 Any disputes arising out of or in connection with this Contract shall be resolved through arbitration in accordance with the rules and procedures of the [Arbitration Institution]. |