ABOUT Decreasing life insurance/Mortgage Life Cover
Decreasing Life Insurance is a type of insurance that is designed to help protect a repayment mortgage. It could pay out a cash sum if the policy holder dies or is diagnosed with a terminal illness with a life expectancy of less than 12 months, during the length of your policy. The amount of cover reduces in line with the way a repayment mortgage decreases with this type of policy.
You can choose the amount of cover you need and how long you need it for. If you’re using Decreasing Life Insurance to help protect a repayment mortgage, it’s important to make sure that the amount of cover matches your outstanding mortgage. You have the option to take out a policy in joint or single names and you can pay your premiums monthly or annually.
Who is Mortgage Life Cover For?
- If you have a mortgage and financial dependants, then this is for you. This type of policy will pay off your remaining mortgage balance in the event of your death should you die during the term of your mortgage. This will give your family and loved ones the rest of mind as the mortgage balance will be redeemed by the pay-out.
Is Mortgage Life Cover Different to Term Assurance?
- Yes, it does. With level term assurance, the policy will pay out the same amount regardless of when a claim is made. Whilst mortgage life cover, usually decrease in term and it is suitable for repayment mortgages.
- With decreasing term assurance, as your mortgage balance decreases year on year so does the sum assured. This type of policy can come with a mortgage guarantee that promises to pay the remaining mortgage balance regardless of future interest rate changes. The advantage of this policy is that the premiums are cheaper compared to level Term Assurance.
Why You Should Consider Life Insurance For A Mortgage
- Will your dependants have enough capital to repay the mortgage in the event of your death? If the answer is no which is often the case, then you should consider taking life insurance. Even if your dependants could pay the mortgage off in the event of your death, they will have also lost your income which could have a huge effect on their finances.
- We are qualified and trained to all aspects of Life Assurance. We will carefully review your personal circumstances now and your aspirations for the future.
- We will recommend what will give you the peace of mind and the security your family and loved ones need.