I am looking at taking out Life Insurance to protect my mortgage and wanted to know what Mortgage Term Insurance actually is? How does this vary from normal Life Insurance?
There are many different forms of Life Insurance available. Term insurance is often referred to as ‘standard’ Life Insurance. This type of cover pays out a lump sum benefit if you were to pass away during the policy ‘term’.
Mortgage Term Life Insurance is essentially a Term Assurance plan taken out specifically to cover a mortgage loan. Please note though that there are two very different types of mortgage life insurance, which are as follows:
When protecting a repayment loan the Decreasing Term Life Insurance route is the most popular option as the monthly premiums are much lower (given that the level of cover falls over time).
When people ask the ‘what is Mortgage Life Insurance’ question it is also worth noting that the life plan can include Critical Illness Cover. With this option added the policy would also pay out if you were to suffer a serious illness or injury specified in the plan (which usually consists of around 40 ‘critical illnesses’, including cancer, heart attack and stroke).
Michael Barrow was absolutely awesome, professional and truly helpful all the way setting up our insurance policy, made it super easy to select the right one. Highly recommend him for everyone. Thank you so much for your hard work Michael.