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Mortgage Life Insurance

What is Mortgage Protection?  - DECREASING TERM LIFE ASSURANCE

There are two main types of mortgage:

  1. The most popular is the repayment mortgage. This will need a decreasing term assurance (see below).
  2. An interest only mortgage will require a level term assurance policy.

MORTGAGE PROTECTION COVER

Decreasing Term Assurance Product Features Ÿ

  • Fixed term of years selected to match your mortgage. Ÿ
  • Sum assured reduces to reflect the outstanding mortgage loan amount each year. Ÿ
  • Sum assured is paid out on death during the policy term. Ÿ
  • No money is paid out if you survive. Ÿ
  • No surrender value. Ÿ
  • The premiums stay the same throughout the term of the policy.

Decreasing Term Assurance Policy Benefits Ÿ

  • Low cost protection cover used in conjunction with a repayment mortgage. Ÿ
  • Cover can be purchased with or without critical illness cover. Ÿ
  • Normally includes terminal illness benefit as part of the standard policy. Ÿ
  • Accepted by most major lenders as suitable cover for your mortgage. Ÿ
  • Ideal for repayment mortgages or loans. Ÿ
  • Premiums guaranteed not to increase from acceptance for the policy term.

Decreasing Term Policy Limitation Ÿ

  • You may want to extend the term, but this is not possible. Ÿ
  • You may be in ill health at the end of the plan and be unable to obtain further cover. Ÿ
  • The reducing sum assured will not take account of inflation standard policy. Ÿ
  • If you increase your mortgage you will need a new policy to cover the extra borrowing.

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