Definitions for "Mortgage protection policy"
A life insurance policy taken out by the borrower that will pay off the outstanding mortgage loan on the death of the borrower. It is usually taken out with a repayment mortgage.
Generally refers to a type of reducing term assurance used in conjunction with a repayment mortgage. The idea is for the sum assured under the policy to reduce in line with the outstanding loan.
A life insurance policy that covers the outstanding amount of mortgage if the policyholder dies before the loan is repaid.