Mortgage Protection Policy (Life Assurance)

Question 1

Under what act is a mortgae-lending agency obliged to ensure that a borrowed has a mortgage protection policy in place?

Answer 1

The consumer care act 1995

Question 2

Under the Consumer Care Act 1995, what is a mortgage-lending agency obliged to ensure a borrower has?

Answer 2

A mortgage protection policy

Question 3

Why should a borrower have a mortgage protection policy?

2

Answer 3

To cover the balance due on a mortgage in the event of their death

In the event of a joint mortgage, to cover the death of one of the borrowers

Question 4

What will the life assurance company do if the borrower dies if they have a mortgage?

Answer 4

They will pay the balance due on the mortgage which means the mortgage lending agency will not be left with an outstanding balance

Question 5

How does a mortgage protection policy benefit the mortgage-lending agency?

Answer 5

If the borrower dies their life assurance will pay the balance