| Type of Cover |
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Type of Cover
Mortgage life insurance is commonly known as decreasing term insurance, the cover reduces each year, usually in line with your mortgage. The monthly premiums remain the same each year and will be cheaper than level term insurance. The policy pays a tax-free lump sum upon the death of the life assured or upon diagnosis of a terminal illness (this is defined as where the life expectancy is less than 12 months), within the term of the policy.
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| Amount of Cover |
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Amount of Cover
This is the lump sum you want the policy to cover you for. i.e. for a £100000 mortgage the cover required is £100000.
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| Length of Cover |
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Length of Cover
This is the number of years you want the cover for. i.e. for a 25 year mortgage the cover required is 25 years.
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| Single or Joint Policy |
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Single or Joint Policy
The policy can either be arranged on one life or on a joint life first death basis. A joint life policy is often cheaper than two single polices however, should a claim be made on a joint life policy the policy will then cease.
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| Include Critical Illness Cover |
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Critical Illness Cover
Mortgage life and Critical illness is a policy that combines decreasing life insurance and Critical illness cover and will pay out once for either death of the life assured, upon diagnosis of a terminal illness (this is defined as where the life expectancy is less than 12 months) or diagnosis of a qualifying critical illness, within the term of the policy.
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