What is Mortgage Protection
DECREASING TERM LIFE ASSURANCE
There are two main types of mortgage:
-
The most popular is the repayment mortgage. This will need a decreasing term assurance (see below)
-
An interest only mortgage will require a
level term assurance
policy.
MORTGAGE PROTECTION COVER
Decreasing Term Assurance Product Features
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Fixed term of years selected to match your mortgage.
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Sum assured reduces to reflect the outstanding mortgage loan amount each year.
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Sum assured is paid out on death during the policy term.
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No money is paid out if you survive.
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No surrender value.
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The premiums stay the same throughout the term of the policy.
Decreasing Term Assurance Policy Benefits
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Low cost protection cover used in conjunction with a repayment mortgage
.
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Cover can be purchased with or without critical illness cover.
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Normally includes terminal illness benefit as part of the standard policy
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Accepted by most major lenders as suitable cover for your mortgage.
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Ideal for repayment mortgages or loans.
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Premiums guaranteed not to increase from acceptance for the policy term.
Decreasing Term Policy Limitation.
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You may want to extend the term, but this is not possible.
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You may be in ill health at the end of the plan and be unable to obtain further cover.
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No investment or savings element.
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The reducing sum assured will not take account of inflation
.
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If you increase your mortgage you will need a new policy to cover the extra borrowing.
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