What is Mortgage Life Assurance ?
Mortgage Life Insurance ~ Key Features
Also known as Mortgage Decreasing Term Assurance, Mortgage Protection Life Insurance & Mortgage Life Cover
The reason for the word "Decreasing" above is that [ assuming you do have a repayment mortgage ] as your mortgage debt decreases, so the potential mortgage life insurance payout will also decrease over time.
Mortgage Life Assurance is there so that your dependents won't have to worry about paying off your mortgage if you die during the term or are critically ill if also you include critical illness cover benefit option.
The reason it is called "assurance" and not "insurance" is because assurance is for something that will certainly happen, whereas with insurance there is only a risk of anything happening. And we all know that death is certain to happen.
What does Mortgage Life Insurance cost?
The cost for Mortgage Life Assurance will depend on your circumstances.
The bigger your mortgage, the bigger your policy will be, so the more you may need to pay. The factors that influence your costs are your age, health, and if you smoke or not. You will find that policies may also take into account your occupation and your participation in risky sports.
Mortgage Life Assurance is there to pay the remainder of your mortgage when you die or as mentioned if you choose the option, suffer a critical illness. Check also that your monthly premiums are guaranteed ie; never change or are reviewable ie; non-guaranteed premiums.
If you own the property jointly with a partner, then it may make sense to get quotes for separate policies as well as joint, as sometimes you may find that the one will be cheaper than the other. And if it's a joint Mortgage Life Assurance policy, it needs to pay out on the first death.
Mortgage Life Insurance Quotes