Mortgage assurance

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Overview

For most of us, the biggest purchase of our life is a home and this usually involves taking out a mortgage with a building society, bank or insurance company. But what would happen should you die before the mortgage is paid off? You would not want to leave your family having to find mortgage repayments at a time when they could be struggling financially.

Our Mortgage Temporary Assurance offers an affordable way of allowing your family to continue to live in the family home without the worry of the mortgage payments to find should the worst happen.

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policy document Download the Mortgage Temporary Assurance policy document to see the full details of our cover.

* NFU Mutual Financial Advisers advise on NFU Mutual products and selected products from specialist providers. We’ll explain the services we offer and our charges.

Repaying your 'capital and interest' mortgage in the event of death

A common method of mortgage repayment is known as "capital and interest." Your monthly payment not only pays the interest due on the loan, but also a part of the capital balance outstanding. Your lender will calculate the payments due so that the mortgage will be paid off at the end of the term. The right protection will allow your family to continue to live in the family home without the worry of the mortgage payments to find.

Our Mortgage Temporary Assurance will pay out a lump sum if you die during the policy term. The initial level of cover will be the same as the amount of your outstanding capital and interest (repayment) mortgage. The amount of cover will reduce each month to reflect the lower amount outstanding on your mortgage. (The reduction is not based on your own mortgage but assumes that the mortgage interest is fixed at 9% throughout the whole term).

It's important to note that if your mortgage rates are lower than 9% during the policy term, then the cover could provide more than is needed to pay off your mortgage. But if your mortgage interest rates exceed 9% at any time, the cover might not be enough to repay the whole of your mortgage.

How much could it cost to cover your mortgage?

Example costs for £100,000 cover for 25 years (accepted on standard rates). These figures are estimates only, the actual premium will depend on your individual circumstances. where there is a sum assured (SA) quoted below, that means the minimum premium for this product purchases more than the required £100,000 sum assured.

Age (next birthday)	Non -smoker	Smoker
35	£10.00 (SA £252,351)	£10.00 (SA £107,226)
40	£10.00 (SA £121,178)	£15.83
45	£12.07	£24.83

NFU Mutual Financial Advisers* can advise you on the length of cover you need and recommend an appropriate amount of cover, dependent on your current circumstances. If your mortgage is another type, speak to one of our Financial Advisers who can recommend the most appropriate cover for your particular mortgage.

You can incorporate Critical Illness cover on your policy which means that we would pay out in the event of death or a specified critical illness.

Critical illness cover

Huge advances in medical techniques have eliminated many of the major causes of early death. Thousands of people suffering serious illnesses such as cancer and heart attacks survive for many years afterwards.

At NFU Mutual we can help to reduce the financial burden with a Critical Illness Policy. This will pay out a lump sum, if, during its term, you are diagnosed with one of the critical illnesses defined (assuming premiums are up to date). We guarantee your premiums will not rise even if your health worsens.

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