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Insuring your life is all about peace of mind: mortgage life cover ensures that, in the event of your death during the mortgage term, your mortgage will be covered with a tax free lump sum.
This safeguards your dependants or partner from having to pay off your debt, which could mean selling your house to cover the mortgage. Life cover can be taken on a decreasing or level basis, to cover repayment mortgages or interest only mortgages respectively.
A decreasing life policy will decrease as your mortgage is gradually repaid, and should always cover the outstanding balance as long as your mortgage rate does not increase above a designated limit, often 10%.
A level life cover is designed to pay out the same amount throughout the term of the policy. Generally decreasing policies are less expensive. The amount of cover you take out does not always have to be dictated by the size of your mortgage; you could for example take enough to cover half of the mortgage where you own the property jointly.
On the other hand, in a family situation the remaining partner might have to give up work, for example to look after children, so couples usually take out enough cover to pay off the mortgage in full.
It is important to remember that your mortgage is likely to be the biggest financial commitment you ever make, so you should carefully consider which kinds of cover you need.
Contact us today and we will explain in detail all the benefits of mortgage life cover and show how much it would cost with different insurers, so that you can make an informed decision as to what level of cover best suits your situation.
As impartial brokers, we can offer you an online service, dealing with the top UK insurance providers, to help find you the most competitive quotes considering your situation and individual preferences.