Mortgage Life Insurance

Mortgage Protection is also known as Decreasing Life Insurance

There are two main types of mortgage:

1. The most popular is the repayment mortgage. This will need a decreasing term assurance policy (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 :

• 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 Limitations: 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.  Ÿ
• If you increase your mortgage you will need a new policy to cover the extra borrowing.

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