Mortgage protection – Explanation of how it works

If you take out a mortgage, you always have the option to take out a mortgage loan for this loan. A mortgage loan is simply an insurance policy that is supposed to help if certain things happen.

If getting one is hard to say then it is your own situation that controls it. After all, mortgage protection costs money while providing greater protection. As a borrower you simply have to think about what is most important of cost and security.

Mortgage protection – What does it cover?

Mortgage protection - What does it cover?

A mortgage loan protection is divided into two different parts. With some lenders you can take out one part only if you want, while in others, both parts are automatically included in the insurance.

  • Inability to work and unemployment – This is the first part and part that will help you if you lose your job or become incapacitated by injury or the like. The amount that you have chosen to insure will be paid out by the lender to cover the cost of the mortgage. The job protection valid until the signer is 65 years. You must have been employed and healthy for a certain period of time before the protection comes into effect.
  • Life insurance – If you die while you have a mortgage loan, the insurance will redeem the entire loan or parts of it according to the insurance terms. Life insurance usually applies to the 75th anniversary.

Who can take out a mortgage loan


The terms can, as usual, differ slightly between the different banks as they always do. But general requirements are often;

  • Applicants must be at least 18 years old but not 60 years old.
  • Must be registered in Sweden .
  • Of course, you must also have a mortgage loan with the lender you want to take out a mortgage loan.
  • Must be fully working. You must therefore have a job and not be on sick leave. Normally, you must have had the insurance for about 150 days if you are going to get any money in case you are terminated. This is so that you should not be able to obtain insurance when you think you should be terminated. If you become injured or ill, you must have had mortgage protection for 30 days.
  • Has not been incapacitated for a long time in the last 6 months.

The price of a mortgage loan is difficult to say in advance

The price of a mortgage loan is difficult to say in advance

Some lenders charge a fixed sum for the protection itself. But other lenders charge a rate depending on what you want to insure.

If there is a small amount that you want to insure, you can get away under USD 100 per month. However, if it is a larger sum, it can cost several hundred kronor per month.