Mortgage Protection Life Insurance
- On death, decreasing benefits are payable until the ceasing date
- Designed to repay a repayment mortgage or loan over the term
- Can be in sole or joint names
- Mortgage Protection Life Assurance benefits are currently paid out tax free on death
- Has no surrender cash in value at any time.
- Medical evidence may be required and a medical examination for those with health issues
- The benefits decrease at rates set by the Insurer annually
- Premiums may be guaranteed or reviewable
Also known as Mortgage Decreasing Term Assurance or Mortgage Life Cover. The reason for the word "Decreasing" above is that [ assuming you have a repayment mortgage ] as your mortgage debt decreases, so the potential payout will also decrease over time. This plan can also include Critical Illness benefit cover
If however, you have chosen an interest only mortgage then you will need a level term life assurance as the mortgage will not be reducing.
Mortgage Protection Life Insurance is there so that your dependents won't have to worry about paying off your mortgage if you die. It pays off the mortgage if you die within a set period or if also you include Critical Illness benefit option.