Mortgages are often taken out in joint names and it is possible to insure both borrowers under the one policy. This can be done in one of two ways.
- Each person can pay a full premium for full mortgage cover,
- One premium can be paid but any claim benefit would be scaled down to match the contributions made by each borrower to the loan repayment, usually based on a pre-agreed split. This pre-agreed split would usually be based on the relative earning of the borrowers.
The mortgage insurance split is decided by the customer and recorded when the mortgage insurance policy is taken out. The split is then shown on the policy documentation. Changes in the split would normally require agreement of both the customer and the insurer.