Living with MS…you can get mortgage life insurance.

In this case study, we will explore the different options for mortgage life insurance that are available to Debbie and provide recommendations based on her needs.

Debbie’s life changed when she was diagnosed with multiple sclerosis in 2008. Since then, she has been dealing with the relapse and remitting pattern of the disease. However, things started to look up six years ago when she received stem cell treatment and went into remission. Despite this, the disease has left her with a limp on her left side, causing her to use a stick and brace on her ankle. But Debbie is determined to keep moving forward and takes fampridine to speed up her walking.

In 2021, she was also diagnosed with arthritis in her left knee, which was treated with an arthroscopy. This procedure did not work and she now receives steroid injections. Despite these challenges, Debbie remains resilient and optimistic, and she does not let her health issues define her. Debbie does not smoke, drink alcohol and has never used drugs. However, her family history of breast cancer has made her more aware of the importance of staying healthy and taking care of herself. Debbie is focused on living her life to the fullest despite the obstacles she faces.

Mortgage Life Insurance: Budget

Debbie is a 39-year-old travel and tourism management professional, who is considering taking out mortgage life insurance. She has been offered a quote by a mainstream insurer for:

• Sum assured: £150,000.00
• Term duration: 25 years
• Monthly premium: £36.53

However, Debbie has a sum assured and term in mind and wants to keep within budget. That’s when Debbie found the Insurance Surgery through an online search for specialist life insurance brokers. Once Debbie explained to her dedicated protection adviser at the Insurance Surgery what her ideal policy would be for, we made it our mission to try and find a policy that was suitable and within budget.

Debbie’s Ideal Policy & Budget

• Sum assured: £145,000.00
• Term Duration: 15 years
• Monthly premium: £20.00

Why Mortgage Life Insurance is Important

Debbie expressed that she wanted to take out mortgage life insurance to protect her niece who was living with her. This is to ensure that outstanding mortgage repayments are taken care of in case of her death. Without such life insurance in place, there is a risk of Debbie’s niece worrying about making payments, and without it, she may face financial issues or even risk losing her home if she is unable to meet the repayments. On top of this, Debbie is also worried that her Multiple Sclerosis will relapse again.

Debbie’s situation: her mortgage at the time was £145,000.00, with a remaining term of 15 years. She has no other debts, nor did she have any credit cards or a partner who required cover. So her protection adviser provided the following option:

• Family cover with a level amount

Given Debbie’s budget of £20 per month, she was considering life insurance with level cover for £145,000.00 over 15 years. This will allow for some money to go towards funeral costs and there may be a little left over to support her niece’s future.

Based on Debbie’s needs, Multiple Sclerosis diagnosis, and budget; her protection adviser found the following options for mortgage protection and life insurance.

Mortgage Life Insurance Option 1:

• Level cover for £145,000.00 over 15 years with a monthly premium of £21.36, which is within her budget.
• The total premium payable over the term time is £3,844.80

However, it is important to note that Debbie may be required to undergo a medical examination or provide additional medical information, given her Multiple Sclerosis diagnoses.

Mortgage Life Insurance Option 2:

However, Debbie may wish to consider mortgage life insurance protection over a longer term:

• Level cover for £145,000.00 over 20 years with a monthly premium of £27.42
• The total premium payable over the term time is £6,580.80

This would be beneficial if Debbie was interested in having cover for a longer period, it’s important to remember that the younger you are, the cheaper your life insurance will be – so getting a quote today, is likely to be cheaper than if you were to get a quote in 6 months time.

The reason why Debbie came to a specialist life insurance broker, was to find affordable mortgage life insurance. With the help of her protection adviser, she was recommended options based on her needs, medical history, and budget. It is important to note that without mortgage life insurance in place, there is a risk of Debbie’s niece worrying about making mortgage payments, and without it, she may face financial issues or even risk losing her home if she is unable to meet the repayments. The case study highlights the importance of considering mortgage life insurance to protect loved ones and ensure financial security in case of unforeseen events.

If you are looking for a specialist broker to help support you with obtaining life insurance for a medical condition, simply email [email protected] or alternatively give us a call on 0800 083 2829.

For more information or support for Multiple Sclerosis, you can contact The Brain Charity via their website.