The amount you are covered for decreases over the term of your policy, similar to the way a repayment mortgage decreases. Typically, mortgage life insurance is cheaper than a level term policy but you can get quotes for both and decide which best suits your needs.
When you buy a house your mortgage lender may attempt to sell you life cover. You’re under no obligation to buy from them, so take the time to compare life insurance quotes and find a policy that best suits you.
When deciding whether you want to buy level life insurance or decreasing term life insurance, it might be worth considering:
- If you don't have any dependents, you might want to just make sure your mortgage is covered
- If you do have a family, it could be worth considering a level term life insurance policy to not only cover your mortgage, but also leave your family a nest egg to help them maintain their standard of living after you've gone
If you are unable to cover your mortgage payments and other outgoings with your savings in the event that you were unable to work due to accident, sickness or unemployment then mortgage-protection.co.uk can help you to get information that you need to know about Mortgage Protection.