Mortgage Life Cover
This type of cover is designed to help protect your mortgage and is often referred to as decreasing life insurance. It protects a repayment mortgage or loan over a fixed term, as the lump sum payable on death reduces broadly in line with the balance outstanding.
It Can Be More Cost Effective
Premiums are set at the start of the plan to take into account the reduction in the lump sum payable. This means they are often cheaper than level term life insurance where the sum assured does not decrease during the plan.
How Much Cover Do You Need?
The cost and level of cover you might need depends on your own personal circumstances, which can be discussed with your adviser. Remember that both level and decreasing life insurance pay out if you die during the plan term but neither have a cash-in value at anytime.
For more information about our IFA and financial planning services, simply complete our enquiry form, send us an email or call our Cambridge office on 01223 357131 or our Norwich office on 01603 661156.